Terra Classic Dev Team Confirms Terraport Hack Was an Insider Job

The hack of Terraport, a top Terra Classic layer-2 decentralized finance (DeFi) project, which occurred on April 10 remains the principal discussion topic in the LUNC community.

This incident which contributed to the notable decline in the price of LUNC got the attention of Binance CEO Changpeng Zhao, whose team worked closely with MEXC Global and KuCoin exchange to ensure that the stolen funds were not dumped on their trading platforms by the hacker. 

Among the speculations that were aired by some LUNC community members was that the Terraport hack occurrence was an insider job. While the team behind the project, TerraCVita, initially rebuffed this claim, a recent statement from them says otherwise.

In a Saturday Twitter thread, TerraCVita, the independent LUNC development team and the creator of Terraport appreciated the community for their support, urging LUNC community members to shun publishing conspiracy theories regarding the hack as the team is all out in seeking the truth and ensuring stolen funds are tracked and recovered.

Notably, TerraCVita confirmed that the security breach on Terraport which led to over 15.1 billion LUNC tokens being stolen from liquidity pools was an insider job but not as some users claimed. “The team was not subject to a “hack,” but an orchestrated, planned long-term infiltration that started 3 months ago with an individual using a fake identity,” TerraCVita said.

According to the Terraport development team, the Binance security team helped in conducting a thorough investigation to uncover the hackers who are also responsible for many other attacks in the crypto space. 

The statement said, “Investigations conducted by Binance’s security team and law enforcement have linked the attacker to a known criminal organization with a long pedigree for mounting attacks such as this one.” It added, “The threat this organization poses is omnipresent, and they have been responsible for many other attacks in the crypto space. Unfortunately, they will not be bargained with, have immense resources, and will not give in.”

It bears noting that while the investigation continues, 55% of all stolen funds from Terraport have been frozen according to TerraCVita. The team noted that sufficient funds will be recovered to enhance the Terraport relaunch. 

“Through coordination with Binance and the services that have received stolen funds, we have successfully frozen an estimated 55% off-chain (by value) of the total amount stolen, and we are increasingly confident this will be returned. We continue to track funds. We are increasingly confident sufficient funds will be recovered to allow Terraport to relaunch and for us to continue to provide support for LUNC with innovative products, infra support, L1 contributions, and stability for the ecosystem,” part of the update said. 

To ensure this kind of event doesn’t occur again, all of Terraport’s code is under audit by CertiK, a top security firm. “Audit findings will be made available for the community,” TerraCVita wrote.

---

Follow us on Twitter, Facebook, Telegram, and Google News