As the latest story in the blockchain industry, there has been a turn of events that have severely affected Terra and its users and investors with the company losing $6. 8 million. The attack, which took advantage of a reentrancy vulnerability in the network’s IBC hooks, begs questions about the security measures of the once-celebrated blockchain protocol.
A web3 security firm, Cyvers Alerts reported that the exploit occurred on 31 July and saw the firm lose 60 million ASTRO, 3. 5 million USDC, 500,000 USDT, and 2. 7 Bitcoin. The flaw was disclosed in April enabling cyber criminals to make payments endlessly pulling out money from the net.
Terra’s Response
Subsequently, to the employed hack on the Terra blockchain, its official X platform declared the suspension of the network’s operations for a few hours to apply the emergency measure. Finally in its post, the official Terra account agreed, sharing that its operations are back online – fundamental transactions that make up the platform are now possible again. However, it was not clear about the value of different total assets which were lost in the event.
Impact on Token Prices
The hack led to an instant change of price in ASTRO as it shed nearly 60% of its value and now sits at $0.0206 just after the network suspension. This sharp decline shows that token prices are quite vulnerable to security breaches, along with the following market insecurity.
The above analysis shows that the case is not the first time Terra ended up facing severe problems. Earlier in the year, the blockchain faced some problems that made many people wonder about the permanency of the chain. Such incidents only rank up these concerns while underlining the necessity of developing reliable security models to safeguard users’ property.
Also Read: Record-Breaking Crypto Heist: Over $1 Billion Stolen in 2024
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