The Terraport platform, developed by TerraCVita, debuted to the public only a few days ago and was recently hacked, causing the loss of nearly $4 million worth of Terra Classic (LUNC), TerraClassicUSD (USTC) and TERRA tokens. This hack was brought to public light by LUNC DAO, a Terra Classic network validator, by revealing two different transactions related to the hack.

The first transaction detailed a withdrawal of 9.1 million TERRA tokens and 15.1 billion LUNC tokens - both of which came from the platform’s now-drained liquidity - that had a combined worth of almost $3.7 million. The second transaction showed a withdrawal of 576,736 TERRAs which tallied up to be worth about $115,000, and 5.48 million USTC added up to about $117,000 in its value.

ReXx, a crypto enthusiast from the Terra Classic community, discussed the platform’s hack and noted that $124,000 worth of tokens had been frozen by the MEXC Global exchange following a warning. ReXx is working with other exchanges to also freeze any remaining assets related to the hack. RexX took a look at the platform’s codebase prior to its launch and suggested that a Certik audit should be done, but those calls were rejected.

This hack raises questions as to why the network was launched without having had a Certik audit first. Audits are of utmost importance to a blockchain platform, and failing to realize this can be extremely costly. Audit protocols review various aspects of the platform, ranging from its security to its private key encryption, and can give the engineering team a better understanding of potential loopholes through which a malicious attack can be made.

Audits can improve network security, and catching a problem early on can save platform owners from a much larger financial and reputational loss - as seen in the case of Terraport. Thus, to make sure a platform is safe and secure, blockchain projects should consider obtaining a professional audit before their full launch.



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