New York,, Thursday, August 8, 2024- The Terra blockchain suffered a significant security breach, leading to an estimated loss of $5.28 million on July 31, Terra said on X.
“Yesterday, the Terra blockchain was the target of a malicious attack exploiting a Cosmos chain vulnerability, resulting in the unauthorized withdrawal of approximately $4 million worth of assets.
“When alerted to the presence of the vulnerability yesterday morning, we immediately coordinated with validators to halt the chain, and then pushed out a software upgrade to patch the vulnerability.
“We have also taken action to blacklist the exploiter’s wallet on Terra.
“We will share a more detailed breakdown of events when we have conclusively established the facts of the incident,” the post read.
The breach targeted Terra’s decentralized finance (DeFi) ecosystem, exploiting vulnerabilities in the protocol’s smart contracts. The attack primarily focused on liquidity pools, where large sums of digital assets are locked to facilitate trading and lending within the network.
The breach was first detected by Terra’s security team after unusual activity was observed in several high-value transactions. In response, the team quickly initiated a security protocol to limit further damage and began collaborating with external cybersecurity experts to trace the attack and mitigate its impact.
The incident marks another setback for Terra, which has faced multiple challenges since its inception. The security breach has reignited concerns over the safety and reliability of DeFi platforms, which, despite their potential for high returns, remain susceptible to sophisticated cyberattacks.
As Terra continues to investigate the breach, the platform has urged users to remain vigilant and follow security updates closely.
Terra’s X post.
