The Terra Luna Classic community has been left reeling after a recent hack that drained nearly $1 billion of community-owned funds.
The well-known development group behind Terraport DeFi, TerraCVita, has taken the lead in investigating the incident, with the help of a “discreet investor” and a law enforcement company.
The hack occurred just days after the Cosmwasm V 2.1.0 upgrade, during which the hackers managed to steal a significant amount of Terra Luna Classic (LUNC) totaling 15 billion tokens.
Additionally, they made off with 9.4 million Terra Classic USD (USTC) and 9.1 million Terra 2.0 (LUNA).
Unfortunately, a large portion of the stolen funds has become irreversible, as the hackers used the infamous crypto mixer, Tornado Cash, to launder the money. This crypto mixer had been banned by the United States government in late 2022.
While the funds sent to Tornado Cash are now untraceable, developer CosmoSreXx believes that the rest of the stolen funds can be tracked with the cooperation of centralized exchanges. He openly criticizes Terraport’s team, blaming them for negligence in dealing with the security breach.
Interestingly, CosmoSreXx took it upon himself to contact one of the exchanges and successfully traced part of the stolen funds.
He claims that if Terraport’s team had been more vigilant in monitoring the movements, the funds would not have made it to the Binance Smart Chain (BSC) network.
Adding to the drama, the Terraport Finance website is now closed, citing a “temporary suspension of Terraport services.”
The website is currently undergoing a security audit conducted by CertiK, a prominent blockchain security team.
However, there has been no response from CertiK regarding the progress of the security audit, leaving the community anxiously waiting for updates.