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Terra Blockchain Faces Security Exploit; $6.8M Worth of Tokens Impacted

by BSCN

July 31, 2024

chain

The exploit targeted a vulnerability in the IBC hooks module, which facilitates cross-chain contract calls and token movements.

The Terra blockchain has recentlyย suffered a major security breach, leading to the unauthorized access and theft of millions of tokens.ย 

The breach targeted a vulnerability within a third-party module known as IBC hooks, a critical component that facilitates cross-chain contract calls and token movements. This exploit allowed hackers to transfer assets, including USDC stablecoin and Astroport tokens, without authorization.

Initial Estimates of Impact

According to Cyvers Alerts, hackers have stolen 60 million ASTRO, 3.5 million USDC, 500,000 USDT, and 2.7 Bitcoin from the Terra blockchain. The total amount of reported losses has reached roughly $6.8 million.ย 

The vulnerability in the networkโ€™s timeout callback of IBC hooks allowed attackers to execute transactions repetitively, resulting in significant losses and potentially minting extra tokens.

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Cyvers Alerts noted that this vulnerability was revealed in April of this year. However, Terra's recent upgrade in June failed to include the critical patch that had been implemented across the broader Cosmos ecosystem. This oversight left the platform exposed and paved the way for the exploit.

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In response to the breach, Terraย halted the network to apply an emergency patch. This measure aimed to prevent further unauthorized transactions and secure the platform from additional theft. Terra has been coordinating closely with its validators to implement the patch and remediate the suspected exploit.

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โ€œWe will be working with the validators on Terra to apply an emergency patch thereafter to remediate a suspected exploit,โ€ Terra stated in their official announcement.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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