Terra blockchain exploit drains over $4 million in tokens – London Business News | Londonlovesbusiness.com

On Wednesday, the Terra blockchain faced a security exploit that drained over $4 million worth of tokens.

Just when you thought Terra couldn’t catch a break, this happens. It’s like déjà vu for Terra, reminding us of its troubled past. Let’s break down what happened:

• Over $4 million in various tokens were swiped in a reentrancy attack
• The blockchain had to hit the pause button to patch things up
• Stolen loot includes $3.5 million USDC, $500,000 USDT, 2.7 Bitcoin, and 60 million ASTRO tokens
• ASTRO token took a nosedive, plummeting 56% after the attack
• Terra’s LUNC tokens are down 3.4% in the past 24 hours

“It’s like watching a bank robber use the front door key that was left under the mat,” says Tobi Opeyemi Amure, an analyst at Tradequotex.com. “This vulnerability was known, patched, and then somehow reintroduced. It’s a face-palm moment for Terra.”

So, what exactly went down? The attacker exploited a vulnerability in something called “IBC hooks.” The bug in Terra’s system let them trick it into giving them tokens over and over again.

The really frustrating part? This wasn’t even a new problem. The weakness the hackers exploited was actually discovered back in April. Terra thought they’d fixed it, but somehow snuck back in during a June upgrade.

The Terra team had to spring into action, hitting the emergency brake on the whole blockchain, and rallying the validators to push through an emergency patch. By 04:19 UTC, they’d slammed the door shut on the attacker.

Now, if you’re feeling a sense of déjà vu, you’re not alone. Terra’s no stranger to drama. Remember the great Terra/Luna collapse of 2022? That little incident wiped out about $40 billion in value. This latest hiccup is small compared to that meltdown, but it’s not exactly the kind of PR Terra needs right now.

The real victims here are the holders of ASTRO tokens. That 56% drop is the kind of roller coaster ride that makes crypto traders reach for the Dramamine. And while Terra’s LUNC tokens only took a 3.4% hit, it’s another dent in the armour of a project that’s been trying to rebuild trust.