TerraCVita Says Attack on Terraport is by Insiders; Here’s Why

With a 13.6% drop in April, Can Terra Classic (LUNC) rebound this month?

Terraport, a DeFi platform residing on the Terra Classic (LUNC) network, was attacked on April 10, less than two weeks after its launch. 

In minutes, the attacker drained the protocol’s liquidity pool of over 15.1 billion LUNC, 9.4 million USTC, and 9.1 million TERRA. Until now, the community has classified the attack as a hack.

But, according to a recent announcement by TerraCVita, the development team behind the platform, the assault on Terraport, has been tied to a recognized criminal organization.

A criminal group member allegedly used a fake identity to infiltrate the Terra Classic (LUNC) development team, according to TerraCVita.

A few days after the incident, TerraCVita tweeted a series of updates to allay rising fears. 

The team commended the efforts made by the Terra Classic community to fight crime and gather information, but they also noted that these efforts could give rise to conspiracy theories.

Related Reading: Terraport’s Ultimate Goal is to Burn LUNC, Not TERRA

Terraport Was Attacked, Not Hacked

TerraCVita confirmed that Terraport was not hacked but attacked by someone who had joined their team three months earlier under a false identity. 

The group recognized the assailant as a member of a well-known group that had previously been involved in similar scams.

This admission supports earlier claims by community members that Terraport was not hacked, and these theories stated that an insider was behind the attack.

According to TerraCVita, an investigation by the Binance security team turned up the information. The group did not reveal the name of the company, though.

Efforts to Recover and Relaunch the Platform

According to TerraCVita, 55% of the stolen assets have been frozen, and the funds will be recovered. The remaining assets are being tracked at this time. 

TerraCVita is working with various parties to increase security, and Certik, a well-known security platform, is auditing the Terraport code.

After being shut down by TerraCVita as a result of the attack, Terraport is still inactive as of the time of publication. The group hopes to raise enough money to restart the platform.

To optimize user benefits, assist projects wishing to build on Terra Classic, and promote the LUNC revival strategy, TerraCVita intends to release a revised roadmap for the relaunch of Terraport. 

They also provided a link to the wallets that have already been traced.

Read Also: Terra: Request by Do Kwon to Block Access to Vital Documents Denied

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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