🚨Terra Hack: $5 Million Stolen Amid Terraform Labs Bankruptcy
On July 31, the Terra Luna chain halted temporarily due to a suspected exploit, announced via Terra’s official account on X (formerly Twitter). This halt at block height 11430400 stopped all network transactions as developers and validators addressed the issue.
Details of the Terra Hack
The Terra team warned users of the chain halt and suspected hack, promising to work with validators on an emergency patch. An attacker exploited a vulnerability in the IBC hooks module, used for cross-chain interactions and token transfers, affecting assets like USDC and Astroport. Preliminary estimates suggest around $5 million in tokens were stolen.Following the announcement, Terra Luna Classic (LUNC) dropped over 4%, but later recovered slightly, dipping 2.84% to $0.00008116.
Stolen Assets Report
The exploit involved minting tokens transferred via IBC to Terra, affecting 500,000 USDT and 2.7 BTC. The attacker used a smart contract and IBC call with a timeout mechanism to gain unauthorized access, siphoning off substantial assets despite never holding more than 56 LUNA and 7,800 USDC at once.
Update on Terra Hack
Block production resumed at 4:19 AM UTC after an emergency chain upgrade. Validators holding over 67% of the voting power upgraded their nodes to prevent future exploits. The fate of the stolen funds and recovery plans remain unclear.
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