Terraport Finance Suffers a $2m Hack
- Some crypto users have slammed Terraport Finance for failing to be completely audited.
- The hack led to a loss of assets valued at $2 million.
- DeFi protocols have continued to suffer attacks from hackers, with SushiSwap losing more than $3 million.
TerraUSD (UST) suffered a shocking collapse about a year ago, but a few projects connected to Terra are still active and working to resolve various problems. Terraport Finance is one such project. The decentralized finance (DeFi) exchange suffered a hack on its liquidity wallet on Monday, April 10. The exchange announced the news on Twitter, claiming that the hacker wiped out all liquidity pools on the platform, resulting in the loss of digital assets valued at around $2 million.
TerraPort Finance wrote,
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.
Social media sources claim that the Terraport hacker moved the stolen funds to Binance and MEXC Global. Investigators have reportedly urged the security teams at both exchanges to freeze the assets.
The news of the wallet hack comes about ten days after Terraport was launched. Developer group TerraCVita created Terraport to aid in the restructuring of the Terra Luna Classic ecosystem by raising the Luna Classic (LUNC) burn rate.
Some crypto users believe the project rushed its launch and had little time to ensure the platform was safe enough for use. Terraport Finance enabled users to swap their Terra and UST tokens for LUNC and burn them. The project already burned 100 million LUNC tokens during the first week of its launch.
Some observers claim that Terraport Finance was launched without being completely audited. Others slammed social media influencers who promoted the project without completing background checks.
The crypto industry is slowly recovering from the bear market, but the DeFi sector, which mostly emerged in 2021, is still plagued by infrastructure and security flaws, with new DeFi attacks occurring practically every day. SushiSwap became the latest to suffer a hack in the DeFi space. A flaw in the smart contract that aggregates transaction liquidity cost the DeFi protocol more than $3 million.
Reports also state that the DeFi sector suffered the biggest hacks during Q1 2023.
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