that much soil Luna
-3.46%
Blockchain reported a security breach on its network that resulted in tokens being stolen.
An unknown attacker has exploited a known vulnerability in a third-party module called IBC Hook, which facilitates cross-chain contract calls and token transfers.
The attacker exploited this vulnerability to drain the value of bridge assets, including USDC stablecoins and Astroport tokens. Initial estimates suggest that around $3 million worth of tokens may have been affected.
After the incident was discovered, Terra implemented emergency measures to prevent further damage and prevent additional tokens from being stolen while the breach was being resolved. Terra worked with validators to apply emergency patches to address the suspected exploit.
“We will work with Terra’s validators to apply an emergency patch to address the suspected exploit,” Terra said.
The vulnerability was discovered months ago and patched across the Cosmos ecosystem in April. However, a subsequent upgrade to Terra in June failed to include the patch, leaving it exposed again and open to exploitation, explains Zaki Manian, co-founder of Sommelier Finance.
“A vulnerability in the IBC hook was discovered in Composable Finance in April. It was patched by Cosmos. Terra was patched at that time,” Manian told The Block. “Terra’s June upgrade did not appear to include the patch. All Axelar USDC tied to Terra was stolen using the IBC hook exploit. A large amount of ASTRO was also stolen.”
Terra was hard forked from the Terra Classic network in 2022 due to a massive financial meltdown that caused the algorithmic stablecoin UST to lose its peg to the US dollar.
This is an ongoing story.
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