Reportedly, the independent Terra Classic development team TerraCVita has teamed up with a law enforcement agency to attempt to recover funds stolen during the Terraport hack incident.
Ever since the unfortunate hack of the Terra Classic layer-2 decentralized finance (DeFi) project in April 2023, affected users are yet to recover their assets. Although the team behind the project —TerraCVita— has claimed in several instances to be making efforts toward remedying the situation and helping users regain their funds, members of the community continue to express dissatisfaction as there is no tangible proof of work from the team.
In recent unfoldings, the team claimed to have hired an agency focused on crypto crimes to assist in recovering funds stolen from Terraport in April by hackers. Whilst concealing the name of the law enforcement agency, TerraCVita noted that the firm is working in pari passu with centralized exchanges, thus, would take the recovery of stolen Terraport funds seriously.
The update read, “Really pleased to say that we have a law enforcement agency that focuses on crypto crime that is taking the recovery of stolen Terraport funds seriously and is working with CEXs. Massive thanks to a discreet investor for helping with this.”
Amid the positivity surrounding the development, a notable member of the Terra Classic community Rexx reacted, questioning the integrity of the Terraport project team and their seriousness in ensuring users’ funds are recovered. Accordingly, he updated the community about the current state of the stolen funds from Terraport and other developments.
According to him, all stolen Terraport funds frozen by exchanges such as MEXC Global and KuCoin were courtesy of efforts from him and Vegas Morph, not TerraCVita. He wrote, “For full transparency about [the] current stolen funds of Terraport from my end. I’m helping because current investors should not pay the price of the team’s negligence. All funds that have been frozen till date was from me and Vegas Morph. If the terraport team is telling you any different, then they’re straight up lying.”
Furthermore, Rexx submitted that TerraCVita isn’t tracking the stolen funds as claimed and neither does the team have direct lines of communication with centralized exchanges, citing that over 800 million LUNC tokens were shifted unnoticed to the popular crypto mixing platform Tornado Cash by the hackers. Notably, these tokens are now lost forever.
“If the funds were consistently monitored, then they would have been able to freeze those funds the moment it hit exchanges, assuming that they have direct lines of communication with exchanges as they have stated that they have,” Rexx added.
Recall that TerraCVita employed the services of Certik to audit Terraport after the hack. To further question the team’s integrity, Rexx pointed out that Terraport’s case has been longer than usual, stuck at 85% for more than four weeks. On the whole, he implied that there may be foul play on the part of TerraCVita, urging Terra Classic community members to not believe everything the development team says.
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