Terra has warned its users against using the layer-1 blockchain’s official website which was compromised over the weekend. Malicious actors have been reportedly using the site to attempt phishing attacks on visitors
People who open the website are prompted to connect their online or hardware wallets. The hackers have disguised the official Terra webpage in order to insert a malicious code into users’ wallets.
If a user connects a wallet to this compromised web page, they end up signing a digital signature, giving the hacker access to assets in their wallet. Terra’s official X (formerly Twitter) account posted a warning message on Sunday which said: “To avoid potential phishing scams, please continue to avoid interacting with sites with the terra(dot)money domain until we post another update confirming full access.
Users have been requested to only refer to the official communication channels for updates. Station, which is powered by Terra, has also asked its users to avoid using its extension, as well as the web and mobile apps until an official update has been posted. The platform is an Web3 interface which allows the access of chains and decentralised applications (dApps) built within Cosmos.
The Terra blockchain is known for being one of the worst hit projects of 2022’s crypto downturn. Its collapse happened after the fall of its native algorithmic stablecoin, $LUNA, wiping off $60billion in value out of the crypto market.
The implosion also made some crypto firms to become insolvent. In March this year, Terra’s co-founder Do Kwon was indicted in the US, facing eight charges including securities fraud, wire fraud, commodities fraud and conspiracy.
As declared by the European country’s interior ministry, he was arrested in Montenegro while attempting to board a flight to Dubai using “falsified travel documents from Costa Rica”. It was Montenegro’s Internal Affairs Minister, Filip Adzic, who took to social media to announce Kwon’s arrest: “Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs.”
As of time of writing, Terra hasn’t revealed the exact amount that has been stolen in the recent compromise. The blockchain had relaunched its related tokens a few months after the crash, heralding the new LUNA token as its native cryptocurrency. It now has a market capitalisation of $151million.
As per CoinGecko, the token was trading in the red, changing hands for $0.436 as of press time. Its price has been on a downtrend as it plummeted by over 22% in the last seven days.