#BinanceHODLerBANANA #BinanceTurns7 #SOFR_Spike #ETH_ETFs_Approval_Predictions #EarnFreeCrypto2024 The Terra chain is grappling with a hack that has led to reported losses of over $5 million, including USDC and Astroport tokens. On Wednesday, July 31, the Terra Luna chain experienced a temporary halt due to a suspected exploit.The network’s official account on X (formerly Twitter) announced that the halt would occur at block height 11430400. During this interruption, all transactions on the network were suspended as developers and validators worked to address and resolve the issue.

Terra Chain Halted After $5 Million Hack: Details and Market Impact

The Terra team issued a warning to users about an imminent halt of the chain at block height 11430400, stating that transactions would be suspended during this period. The team indicated concerns about a potential Terra hack and assured users that necessary measures would be taken to address the issue. They announced plans to work with validators on Terra (phoenix-1) to apply an emergency patch to remedy the suspected exploit.

The attack targeted a vulnerability in a third-party module known as IBC hooks, which is used for cross-chain contract interactions and token transfers. This exploit allowed the attacker to drain value from bridged assets, affecting tokens such as USD Coin (USDC) and Astroport. Preliminary estimates suggest that around $5 million in tokens might have been compromised.

Following the hack announcement, the price of Terra Luna Classic (LUNC) saw a notable drop, falling over 4%. Despite this initial decline, LUNC managed a partial recovery. As of the latest update, LUNC’s price had decreased by 2.84%, reaching $0.00008116.

Terra Chain Hack: $5M Lost During Bankruptcy

The Terra chain has suffered a major security breach due to an unpatched vulnerability, which allowed an attacker to mint tokens that were Inter-Blockchain Communication (IBC) transferred onto Terra. This vulnerability has emerged at a critical time, coinciding with important deadlines in the Terraform Labs bankruptcy proceedings.

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The exploit involved a sophisticated process utilizing a smart contract, IBC hooks, and a timeout mechanism. By leveraging these elements, the attacker gained unauthorized access to significant assets, including 500,000 USDT and 2.7 BTC. The Terra team is actively investigating the breach to pinpoint the exact nature of the exploit and to address the vulnerability.

The attack followed a sequence where a smart contract was created on the Terra blockchain and called using an IBC transfer that timed out. This timeout resulted in the tokens being redirected to the attacker’s account. Despite the exploiter’s wallet only receiving a maximum of 56 LUNA and 7,800 USDC per transaction, they managed to extract millions of dollars’ worth of assets.

The Terra team, along with Astroport, is working diligently to understand the exploit and prevent future incidents. Astroport has pledged to collaborate with other chains and Cosmos builders to assess and implement necessary measures, promising to provide updates as more information becomes available.

Terra Chain Resumes Operations After $5 Million Hack

The Terra team has resumed block production following the recent security breach. In a post on X, they announced that block production restarted at approximately 4:19 AM UTC today, and the emergency chain upgrade is now complete. Transactions are processing normally, and users can resume their activities on the network.

Validators holding over 67% of the voting power on Terra have upgraded their nodes to prevent the exploit from recurring, with more expected to follow suit. However, the team has not provided details on the recovery of the stolen funds or their plans for addressing the breach.

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Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.