Terraport Accused of Incompetence as Stolen Terra Classic Funds Moves to Tornado Cash

Terraport Accused of Incompetence as Stolen Terra Classic Funds Moves to Tornado Cash

As the Terraport exploiters transfer some of the stolen money to Tornado Cash, a member of the Terra Classic community has accused the Terraport crew of incompetence. A well-known Terra Classic (LUNC) community member named reXx has drawn the notice of the transfer of some of the money obtained through the April Terraport exploit. 

Given that most funds were ultimately tunneled to cryptocurrency mixer Tornado Cash, he blamed the Terraport staff for incompetence. ReXx recently highlighted 10 BUSD and BNB-related transactions on the Binance Smart Chain (BSC) in a tweet. 

A thorough examination of the transactions reveals that the exploiters transferred BUSD worth $88,649 from MEXC to unidentifiable wallets. The majority of these funds were afterward directed toward Tornado Cash. The series of transactions started on June 14 and went through June 18 in that order. Most transfers converted BUSD tokens from MEXC and KuCoin to BNB tokens and moved them from those addresses to Tornado Cash.

In a famous instance, MEXC sent BUSD worth $39,872 to a well-known address throughout five transactions. The BUSD tokens were then exchanged for 159.9 BNB by the address. Then, 58.9 BNB was transmitted to a different location, while 101 BNB was tunneled to Tornado Cash. 

The BNB was then combined with other funds the recipient address had previously received, and all the assets were sent to Tornado Cash. There were more addresses involved in these transfers, totaling $88,649.

Related Reading: Binance Adds Support for Terra Classic v2.1.0 Upgrade

What Does This Mean For Terraport?

The Terraport team’s inability to effectively track these movements and sound the alarm was criticized by reXx, who brought attention to the transactions. He emphasized that, as a single individual, he had observed suspicious movements twice; the Terraport crew ought to have done the same.

ReXx claims that if Terraport had kept track of the movements, the assets would not have arrived at BSC. He underlined that active surveillance in the past allowed exchanges to freeze some assets.

ReXx acknowledged that he could only obtain the specifics of the BSC transaction by contacting the relevant exchange. He remarked that the correspondence showed him that Terraport had not contacted them about the situation. 

Because of this claimed neglect, reXx is debating whether the Terraport team merits a second chance to deploy the DeFi platform based on Terra Classic. Remember that TerraCVita, the Terra Classic development team that created the platform, announced their intention to relaunch it following the CertiK audit.

The project’s progress in its Certik audit was noticed earlier this month. The team had acquired its Certik Silver KYC Badge, which TerraCVita noted. As of publication, the CertiK team had submitted the Terraport team a report of the audit and was awaiting their evaluation.

Read Also: Terra Classic (LUNC) Reaches Stunning 1 Trillion Staked Token Milestone

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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