Terraport Finance, a decentralized finance (DeFi) exchange based on the Terra Classic blockchain, suffered a breach of its liquidity wallet on April 10, resulting in a loss of about $2 million in digital assets.
The project, which launched seven days before the hack, was built to help rebuild the Terra ecosystem by increasing the Luna Classic (LUNC) burn rate.
The Terraport team is still investigating the breach and working with community members and major exchanges to secure as many of the funds as possible and blacklist wallets.
While the hack is yet another reminder of the vulnerabilities of DeFi projects, it has also raised questions about the rushed launch of Terraport Finance.
Several Twitter users have called out crypto influencers who promoted the project, while others claimed that no audit was completed before the launch. Some crypto enthusiasts have also expressed fear for investors in the project.
The stolen funds were reportedly moved to Binance, but the exchange has denied receiving the funds. Binance CEO CZ said that the exchange’s team reviewed the transactions and that their analysis showed no funds were deposited. However, he noted that the funds were transferred to MEXC and KuCoin.
The project recovery will depend on how the team handles this case, as they will now have to battle depleted investor confidence and negative market sentiment.