The Terra Classic community-driven project suffered a huge blow following the cruel hack of its layer-2 decentralized finance project, Terraport, ten days after its launch.
The Terraport project which promised to burn millions or billions of LUNC weekly based on its accrued transaction volume got hacked on April 10. Consequently, roughly 15.1 billion LUNC tokens were moved out of the DeFi platform’s liquidity pools alongside hefty amounts of TerraClassicUSD (USTC) and Terraport native token, TERRA.
CZ Binance Renders Support
To salvage the situation and prevent the hacker from dumping the billions of LUNC tokens drained from Terraport’s DEX, high-ranked Terra Classic community members reached out to all exchanges where the stolen LUNC tokens were moved to including KuCoin and MEXC.
Accordingly, Dr. Rajia Bibi, the Chief Executive Officer of DRIV3N LIMITED and LUNC proponent drew the attention of Binance CEO Changpeng Zhao to the Terraport hack incident, highlighting that $2,000,000 was lost to the unfortunate incident.
Bibi, who assumed that the hacker had moved some of the funds to the Binance and MEXC exchange, requested the tracking and freezing of the assets. Responding to the distress call, CZ directed the Terra Classic community to submit a Customer Support case to the appropriate quarters for quick response and attention to the matter.
“Please submit a CS case ASAP. We have a SOP for it, it’s faster than going through me. I don’t know which account/address, etc. And I am a slow middleman,” he replied. Shortly after this reply, CZ submitted that there is no record of the stolen funds on the Binance exchange per the review executed by the exchange’s security team.
Please submit a CS case ASAP. We have a SOP for it, it's faster than going through me. I don't know which account/address, etc. And I am a "slow middle man".
— CZ 🔶 Binance (@cz_binance) April 10, 2023
He added that their analysis showed that the hacker moved most of the stolen LUNC tokens to KuCoin and MEXC trading platforms. According to CZ, “Our team reviewed the transactions. Our analysis shows no funds were deposited in Binance. Some of the hacked funds were deposited to MEXC and KuCoin. Not much we can do here.”
Response from KuCoin and MEXC
On the other hand, the MEXC Global Exchange team pledged support to the LUNC community, revealing that they joined forces with Binance to remedy the issue and freeze the stolen LUNC tokens.
“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 industry,” the top exchange said.
Accordingly, MEXC initially froze over $124K worth of LUNC assets as reported by reXx, a notable Terra Classic community member. The exchange equally suspended LUNC withdrawals to trap the funds. In a follow-up tweet on the same day, reXx revealed that MEXC froze an additional 600 million LUNC tokens linked to the Terraport hack.
Exchange @MEXC_Global has shut off deposits for #LUNC for the time being. I am in direct communication with all of the exchanges funds are being sent to.
Please be patient and I will keep everyone up to date.
— reXx™ (@CosmoSreXx) April 10, 2023
An additional 600m LUNC was frozen on @MEXC_Global exchange. When everything calms down on my end, I will make a tweet on how to go about getting your funds back. pic.twitter.com/uAkvj7jMoH
— reXx™ (@CosmoSreXx) April 10, 2023
Likewise, KuCoin CEO Johnny Lyu stated that the KuCoin team has been taking action to protect the users and will continue to keep high attention on the Terra Classic hack. With the help of these top exchanges, an estimated 55% off-chain value of the total stolen assets from Terraport has been frozen per a Saturday update from TerraCVita.
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