According to ChainCatcher, The Block reported that the Terra blockchain reported a security vulnerability in its network, resulting in token theft. An unknown attacker exploited a known vulnerability related to a third-party module called IBC hooks, which helps to implement cross-chain contract calls and token movements.
The criminals exploited this vulnerability to steal the value of bridged assets, including the USDC stablecoin and Astroport tokens. Initial estimates suggest that approximately $3 million worth of tokens may have been affected.
After discovering the incident, Terra implemented an emergency measure and the Terra chain was briefly stopped at block height 11430400, during which no transactions would be processed. Terra will work with validators on Terra (phoenix-1) to subsequently apply an emergency patch to fix the suspected vulnerability.
