Terra Blockchain Suffers $6.8 Million Hack, Network Halted

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. 

Market Impact: ASTRO Plummets!

The hack had an immediate impact on the price of ASTRO, which dropped nearly 60% to $0.0206 following the network suspension. This sharp decline highlights the vulnerability of token prices to security breaches and the resulting market instability.

This incident is not the first time Terra has faced severe challenges. Earlier this year, the blockchain encountered significant issues that cast doubt on its long-term viability. These repeated incidents emphasize the need for stronger security measures to protect users’ assets and maintain trust in the network.

Terra’s recent hack serves as a stark reminder of the ongoing security challenges in the blockchain industry. As the platform works to regain stability, the broader crypto community will be watching closely.

Also Read: Record-Breaking Crypto Heist: Over $1 Billion Stolen in 2024

This is a major setback for Terra. How do you see this impacting the blockchain industry?