The most promising DeFi project of Terra Classic (LUNC), Terraport Finance, reported a hack of its Terraport liquidity wallet on Monday. In a tweet, the team shared that a hacker siphoned liquidity from Terraport Finance. Nearly 9.5 million TERRA, 15 billion LUNC and 5.5 million USTC were stolen by the hacker.
Subsequently, Binance CEO Changpeng Zhao shared that his team reviewed the transactions and found that no funds were deposited on Binance – unlike MEXC and KuCoin, where deposits were detected.
Was The Terraport Finance “Hack” An Inside Job?
A Terra Classic developer and prominent community member, @CosmoSreXx, popularly known as reXx, has raised serious allegations against the Terraport Finance developers yesterday. He claims that the Terraport hack was actually a rugpull.
The developer investigated the incident and found that three wallets hard-coded into the Terraport source code were responsible for the exploit. For him, this is clear evidence of a rugpull, as long as the developers of Terra Classic’s DeFi application do not make the full source code public.
I do understand that this code is closed source to “protect” it’s value, but as it sits right now. There is no value and people have been rugged. Closing out communications and being no responsive/addressing the issue does not make this situation any better.
— reXx™ (@CosmoSreXx) April 11, 2023
“Without the full transparency of the other parties involved (@TerracVita and _Terraport_) we can only go based of what we (me and 2 other individuals) have uncovered from the encryption. To have a concrete answer, we need to see the source code (though I know it was changed),” reXx elaborated.
The developer expressed understanding that the source code is closed to protect its value. However, the situation makes it necessary, moreover, closing the communication and not reacting to the problem is a bad sign.
“I’ve come to the conclusion that this is an inside job. I am not saying all team members of Terraport knew/were apart of this, but this leads back to who coded this DEX,” concluded reXx, who also referred to an audit he requested that was never conducted.
On April 2, reXx pointed out several security vulnerabilities in the Terraport platform code. According to the developer, a CertiK audit would have cost up to $50,000. He also noted that the code was implemented back in January and the team should have identified it since then.
If anyone is going to publicly swear up and down that Terraport was “hacked” and not RUGPULLED (it’s obvious with blockchain data) then prove it. Should be a simple task to do to back up your claim.
Terra Classic (LUNC) Price Stuck In Downtrend
At press time, the LUNC price stood at $0.00012235, down 4% in the last 24 hours. A look at the 1-day chart of LUNC shows that the price has been in a downtrend since it emerged after the Terra Luna collapse.
The price has formed a falling triangle pattern. Any attempts to break above the resistance line have failed so far. The support line at $0.000116 is the mark that is currently preventing a plunge to a new all-time low.
Featured image from Mint, chart from TradingView.com