Terraport Finance DeFi Exchange Hacked, Losing $2M Worth of Digital Assets

The decentralized finance (DeFi) exchange project Terraport Finance announced a security breach on its liquidity wallet on April 10. The hacker reportedly drained all liquidity pools from the platform, causing losses of approximately $2 million worth of digital assets. 

Terraport is currently working with community members and major exchanges to secure as many of the funds as possible and blacklist wallets. The team has tracked all the funds that were stolen.

According to social media reports, the hacker has allegedly transferred the stolen funds to exchanges Binance and MEXC Global. The investigators have urged the exchanges’ security teams to freeze the assets as soon as possible.

Criticization on Rushed Launch of Terraport

While Terraport has been investigating the security issue and preparing an incident report, the crypto community has stood up to criticize the rushed launch of Terraport. Following a token sale in February and March 2023, TerraCVita launched its Terra Classic-based decentralized exchange, Terraport, on March 31.

Some online commentators have questioned the project’s driving force, asking why it was necessary to launch so quickly after a two-month presale. Some industry observers have also alleged that Terraport went live without completing an audit, which may have triggered more complications.

Influencers criticized for promoting Terraport

The crypto community has expressed outrage against influencers who were involved in promoting Terraport before the hack. According to LUNC enthusiast Levi Rietveld, some influencers removed their LUNC-related content soon after the platform was hacked, which led to speculation that someone on the Terraport team was involved in the hack.

DeFi security concerns persist

DeFi continues to struggle with security and infrastructure vulnerabilities, with new incidents coming up almost every day. On April 8, DeFi protocol SushiSwap lost more than $3 million due to a bug in the smart contract that aggregates trade liquidity.

Emerged largely in 2021, the DeFi industry has faced a string of exploits, hacks, and scams, resulting in the loss of billions of dollars worth of digital assets. While decentralized finance promises a more inclusive and decentralized financial system, these security issues highlight the urgent need for more robust security measures in DeFi.

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