A hacker drained all liquidity pools on Terraport, a newly launched DeFi platform on Terra Classic.
Terraport notified users of the exploit in an April 10 update, saying the team had tracked the stolen funds and was working with major exchanges to freeze assets associated with the hacker’s address.
Sadly during the last few hours a hacker drained liquidity pools from Terraport.
We are currently working with community members and major exchanges to secure as many of these funds as possible and blacklist wallets. All funds have been tracked.
Thank you for your…
— Terraport Finance (@_Terraport_) April 10, 2023
Over the course of a few hours, the hacker drained all $2 million worth of liquidity from the newly launched decentralized exchange. Terraport went live on March 31 on the Luna Classic blockchain, the original network that hosted LUNA and the algorithmic stablecoin USDT. Terra Classic’s native token has been renamed LUNC and is currently trading at a value of $0.0001249.
On-chain data shows that the hacker drained Terraport’s funds in two transactions, withdrawing a total of 9.7 million of Terraport’s native token TERRA, 15 billion LUNC and 5.5 million of the algorithmic stablecoin USTC.
Binance CEO Changpeng Zhao said that no stolen funds were deposited on Binance, but the exchange’s internal team of investigators identified that some deposits were made on MEXC and KuCoin.
The MEXC team has been working with Binance in the shortest possible time to freeze illicit assets.
MEXC has always acted fast in fighting evil. We have long cooperated with other exchanges to jointly fight against illegal behaviors and promote the sound development of the… https://t.co/VLTBBrkskR
— MEXC Global (@MEXC_Global) April 10, 2023
KuCoin team has been taking actions to protect the users and will continue to keep a high attention on it.
— Johnny_KuCoin (@lyu_johnny) April 10, 2023
Some members of the crypto community believe that the hack was orchestrated by someone within the Terraport team.
Blockchain data analyzed by “0xEars” found that a wallet involved in the Terraport launch made a series of suspicious changes a few hours before the DEX was drained of all tokens. The Terraport developer wallet made changes to the code of three key smart contracts related to liquidity provision functions on each of the DEX’s trading pairs. Five hours later, all of the protocol’s liquidity had been drained.
7/ If these changes were made last night by the team, they MUST disclose what these changes were asap.
Or – admit the wallet was compromised.
Full transparency is the only way out here.
— 0xEars (@0x_Ears) April 10, 2023