Terraport Finance, a decentralized finance (DeFi) exchange project on the Terra Classic blockchain, suffered a major security breach on April 10, resulting in the loss of about $2 million worth of digital assets.
The platform announced the incident on Twitter, stating that the hacker had drained all liquidity pools from the platform.
Terraport is currently working with community members and major exchanges to recover as many funds as possible and blacklist wallets.
Social media reports claim that the hacker has transferred the stolen funds to exchanges Binance and MEXC Global, prompting investigators to urge the exchanges to freeze the assets.
The rushed launch of Terraport has come under criticism from online crypto enthusiasts, who have raised questions about the project’s driving force.
Terraport launched on March 31 following a token sale in February and March 2023. However, the project allegedly went live without completing an audit, which triggered further complications.
Many in the crypto community have expressed outrage against influencers who had promoted Terraport before the exploit, with some deleting LUNC-related content from their social media.
The DeFi industry continues to struggle with security and infrastructure vulnerabilities, with new DeFi incidents coming up almost every day. SushiSwap, another DeFi protocol, recently lost more than $3 million due to a bug on the smart contract that aggregates trade liquidity.
The industry emerged largely in 2021, and while many projects are still live and trying to overcome issues, incidents like the Terraport hack highlight the continued risks for investors and traders.
READ NEXT
Previous Articles:
- zkRollups vs. Optimistic Rollups: Which is Better for Scaling Ethereum?
- Bitcoin Futures Approved in Argentina as Citizens Seek Inflation Relief
- Crypto Holders in Spain Get Warning: Pay Up or Face the Consequences
- Bitcoin Halving: The Event That Could Launch the Cryptocurrency to New Highs
- Montenegro’s Central Bank Partners With Ripple for CBDC Pilot Program
