Terra Blockchain Exploit Drains Over $4 Million in Tokens

Published: 2024-08-21 06:26:45 pm

 

The Terra blockchain was halted on Wednesday morning after an exploit led to the theft of millions of dollars in tokens. The attack resulted in approximately $4 million worth of tokens being drained, including around 60 million ASTRO tokens, 2.7 BTC, $3.5 million in USDC, and $500,000 in USDT stablecoins.

In response, Terra paused the blockchain at block height 11430400 to allow validators to implement an "emergency patch." The network resumed block production around 4:19am UTC, after validators with over 67% of the chain's voting power had updated their nodes.

Following the exploit, the ASTRO token from Astroport dropped to an all-time low of $0.01314, and is currently trading at $0.0218, marking a decline of over 53% for the day, according to CoinGecko. Terra's own LUNA token fell to $0.385 immediately after the attack but has since settled at approximately $0.3944, down about 2.7% on the day.

Beosin, a blockchain security firm, reported that the attack exploited a known vulnerability through a malicious CosmWasm contract. The vulnerability, a "reentrancy issue in the timeout callback of ibc-hooks," affected the inter-blockchain communication (IBC) protocol used for cross-chain interactions.

Terra, also known as Terra 2.0, is a hard fork of the original Terra blockchain, Terra Classic (LUNC), which collapsed in 2022 due to the failure of its algorithmic stablecoin, UST, causing widespread disruption in the crypto market.

source: https://decrypt.co/242549/terra-blockchain-exploit-drains-over-4-million-in-tokens

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