Terra Blockchain Exploited Again, Hackers Steal $6.8M in ASTRO, USDC, USDT, and BTC

Infamous blockchain protocol Terra has recently been allegedly exploited due to a vulnerability that was revealed months ago. According to a Cyvers Alerts post on Twitter today, July 31, hackers have stolen 60 million ASTRO, 3.5 million USDC, 500,000 USDT and 2.7 Bitcoin (BTC) from the Terra blockchain.

Cyvers Alerts on X reported that hackers have exploited the Terra blockchain, leading to the theft of 60 million ASTRO, 3.5 million USDC, 500,000 USDT, and 2.7 Bitcoin (BTC). The total reported loss amounts to approximately $6.8 million.

According to Cybers Alerts, the attackers exploited a vulnerability in the network's timeout callback of IBC hooks, which enabled them to execute a transaction repeatedly, potentially leading to the loss of funds or the minting of additional tokens. The vulnerability was reportedly "revealed in April of this year."

Terra's official X page announced the halting of the network to "apply an emergency patch" due to an alleged exploit just hours before Cybers Alerts' X post. The Terra chain resumed block production at approximately 4:19 AM UTC, and the emergency chain upgrade was completed.

Terra announced that the blockchain had resumed its operations and the emergency upgrade had been completed at 07:40 UTC. The X post stated that transactions are now being processed and users can resume normal activities.

However, Terra has yet to disclose the details and the amount of assets lost. The ASTRO price reportedly plummeted by 60% after Terra halted the network operations.

Terra (LUNA) collapsed in May 202s after Terraform Labs' now infamous algorithmic stablecoin, TerraUSD (UST), lost its 1:1 peg to the U.S. dollar. The company's co-founder, Do Kwon, was arrested by Interpol in March 2023, and recent evidence suggests that he deceived investors with fake transactions, contributing to the downfall of Terraform Labs.