A prominent Terra Classic (LUNC) community member, reXx, recently took to Twitter to bring the attention of Twitter users and the general public to the distribution of some of the funds stolen from the Terraport exploit of April.
In the recent tweet citing ten transactions on the Binance Smart Chain (BSC) involving BUSD and BNB, reXx’s tweet also implied negligence on the part of Terraport’s team, as most of the stolen funds got channeled to crypto mixer Tornado Cash.
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The Terraport team has neglected monitoring wallet movements involved in the rugpull.
(https://t.co/2sEX4oCSXx)I occasionally check these wallets incase there is movement and I've spotted movement twice even though I'm one person and they have 20 extra pair of eyes to watch…
— reXx™ (@CosmoSreXx) June 18, 2023
Details Of Terra Classic (LUNC) Stolen Funds
Transaction details revealed that a combined estimated $88,649 worth of BUSD was transferred from MEXC to yet-to-be-identified wallets, after which these funds got moved to Tornado Cash.
The transactions culminating in the theft involved a series of different transactions, which started on June 14 down to June 18. Most transfers involved sending BUSD tokens from MEXC and KuCoin to unknown addresses and converting them to BNB coins, which would get pushed to Tornado Cash.
A relatable scenario is an address said to receive $39,872 worth of stolen BUSD from MEXC via five different transactions. The address exchanged the BUSD tokens for 159.9 BNB, which got forwarded to Tornado Cash, and another 58.9 BNB got sent to another address. The recipient address finally mixed the BNB with other funds it got earlier, transferring all the assets to Tornado Cash.
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Terraport Perceived Failure To Track These Fraudulent Transactions
reXx expressed utter disappointment in Terraport’s team negligence, culminating in a loss estimated at about $88,649 worth of BUSD. Per reXx, the Terraport team failed to effectively observe these suspicious movements and raise the alarm, noting that he noticed such fraudulent transaction moves twice, even as an individual.
Furthermore, reXx maintained that active monitoring could have prevented many assets from getting to BSC by freezing some of these acquisitions.
However, reXx confirmed that he obtained access to the BSC transaction details when he contacted the exchanges involved. He noted that the exchange said Terraport is yet to make any significant move regarding the pending fraudulent issue.
For anyone trying to defend this team. If the movements were “monitored” then the funds wouldn’t have made it to the BSC network. All prior funds that were sent to exchanges were frozen due to active monitoring.
— reXx™ (@CosmoSreXx) June 18, 2023
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Basis Of Relaunching The Terra Classic-Based DeFi Platform By Terraport
Terraport’s apparent negligence seemed to beg the question if the team deserves another chance to relaunch the Terra Classic-based decentralized finance (DeFi) platform. Notably, the Terra Classic development group behind the outlet, TerraCVita, has revealed their plan to relaunch after the CertiK audit.
Remarkably, the project has recorded progress in its Certik audit in addition to obtaining its Certik Silver KYC Badge. Sources confirmed that the CertiK team sent a statement of the audit to the Terraport team and is awaiting their assessment.
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