Terraport Finance, a DeFi platform on the Terra Classic network, has been hacked and lost over $2 million worth of digital assets from its liquidity wallet.
The project’s official Twitter handle announced on April 10 that the Terraport team is still investigating the breach and is working to secure the protocol.
A breach was detected in the Terraport Liquidity wallet this morning. The Terraport team is currently investigating this breach and efforts have been made to secure the protocol. Further official press release will be released later. We appreciate the understanding…
— Terraport Finance (@_Terraport_) April 10, 2023
Terraport Finance Hack
The wallet hack occurred just ten days after the launch of Terraport, which was created by TerraCVita to rebuild the Terra Luna Classic ecosystem by increasing Luna Classic (LUNC) burn rate.
Terraport Finance allows users to swap Terra and UST tokens for LUNC, which is then burned. After its first week, the platform burned 100 million LUNC tokens, showing its commitment to revitalizing the network after its failure in May.
The breach in Terraport’s liquidity wallet resulted in the loss of LUNC and USTC tokens. The total amount lost remains unknown as a detailed report has yet to be released by the project’s team.
Exchanges Asked to Block Stolen Funds
After the hack, a Twitter user named Rajia Bibi reached out to Binance’s CEO Changpeng Zhao (CZ), requesting that the exchange’s team freeze the funds stolen from Terraport that had reached it. The user also called on crypto trading platform MEXC Global to take similar action.
CZ suggested that the situation would be resolved faster if Bibi contacted the appropriate Binance team, stating that he was a “slow middleman.” The CEO later revealed that while some stolen funds had been deposited at KuCoin and MEXC, none had made their way to Binance.
Our team reviewed the transactions. Our analysis shows no funds were deposited in Binance. Some of the hacked funds was deposited to MEXC and KuCoin. Not much we can do here.
— CZ 🔶 Binance (@cz_binance) April 10, 2023