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Terraport Finance Plummets: Hackers Drain $2 Million Days After Launch

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ByMarcel Bich

Apr 20, 2023
Marcel Bich
Latest posts by Marcel Bich (see all)

Discover the shocking aftermath of the Terraport Finance DeFi-platform hack, where cybercriminals siphoned $2 million in digital assets within days of its launch.

Terra users have been dealt another blow as the newly launched Terraport Finance DeFi-platform fell victim to a hacking attack.

Nearly a year has passed since the TerraUSD (UST) algorithmic stablecoin crashed; however, several projects connected to the Terra ecosystem continue to operate and attract new users.

On April 10, Terraport Finance, a decentralized platform built upon the Terra Classic blockchain, experienced a liquidity pool hack. Per the project’s representatives, the assailant depleted all the pools, siphoning off around $2 million worth of digital assets from the platform and then shifted them to Binance and MEXC Global.

“We are currently collaborating with community members and major exchanges to safeguard as much of these funds as possible and blacklist the wallets. All funds have been traced”, Terraport stated.

The cryptocurrency community questions the Terra team’s integrity

As Terraport investigates the security breach and prepares an incident report, numerous crypto-enthusiasts have voiced their criticisms of the project.

TerraCVita launched the decentralized platform on March 31, and by April 7, had already burned nearly 100 million LUNC tokens in an attempt to revive Terra. Some community members allege that Terraport failed security audits.

Some users have voiced their displeasure towards influencers who promoted Terraport prior to its exploitation. Levi Rietveld, an avid follower of LUNC, stated that a number of crypto bloggers promptly deleted any Terra-related promotional material following the platform’s security breach.

DeFi projects remain lucrative targets for hackers

The decentralized finance market persists as a primary target for cybercriminals. In the past quarter, 99.6% of attacks targeted the DeFi sector, with a mere 0.4% of exploits aimed at centralized sites.

By the end of the first fiscal quarter of 2023, crypto investors had lost over $418.5 million due to hacking attacks. Euler Finance (around $197 million) and BonqDAO (about $120 million) accounted for 72.5% of these losses. In Euler’s case, the hacker has already returned all stolen funds.

 
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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.