A top developer exposes the Terra Classic hack to be a rugpull or “inside job” that clawed millions off of the hands of investors. Terraport, a decentralized finance platform on the Terra Classic blockchain, was reportedly hacked Wednesday with losses amounting to $2 million initially.
Nonetheless, a developer by the pseudonym reXx reveals that the alleged rugpull was not done by a third party. He found several strong on-chain evidence that someone inside the team rug-pulled investors on launch day.
Investors of @_Terraport_ please read this article as it explains multiple major security breach on its platform.
Keep in mind that this was easily viewable to the public. Be sure to do your due diligence before investing. https://t.co/3qOtTzze5u
— reXx™ (@CosmoSreXx) April 2, 2023
Blockchain Data Shows Malicious Actors On Terraport
Although Terraport’s only official Tweet after the alleged rugpull incident was an update regarding the situation, there is no definite answer as to how the supposed exploit happened. According to reXx, the wallets that emptied Terraport’s liquidity pools were hard-coded on the DEX’s code.
There are 3 specific wallet addresses that was located in the @_Terraport_ code.
terra17ytfeva5uadnhcvhgxfkvyfmt6daues7nkr9r2 terra1z5luj6qdtclnt5jnjkrtnlj9zankf654638dq2 terra19yrq0mehjfk5cquxn4svjxft4rmhcc9g8t0yma
These 3 wallets executed the exploit. How it got in there? 🤷♂️— reXx™ (@CosmoSreXx) April 10, 2023
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This posed the question of whether everyone on Terraport’s team benefitted from the exploit. reXx also pointed out that the code was already embedded back in January, months before the launch date of Terraport’s DEX. This goes to show how negligent the team behind Terraport was.
I’m actually pretty irritated how nobody is talking. We are talking about millions of dollars of investors (YOU) funds compromised. This is 100% a RUGPULL built into the code since early January. Blockchain data does not lie. pic.twitter.com/b61eyjo2tA
— reXx™ (@CosmoSreXx) April 12, 2023
Despite these strong allegations, Terraport has not responded to reXx’s demands to make the source code public. There has been no announcement about an internal audit of Terraport’s source.
Crypto Sussana, a validator for several blockchains, added to the rugpull discussion. The account alleges that two of the addresses hard-coded is the primary thief while the other is negligent or directly complicit.
For now, the addresses that are associated with the exploit is blocked by several major exchanges with an accompanying investigation.
Image: Capital.com
Rugpull? How Does LUNC React to The News?
Fear, uncertainty, and doubt are mostly present around the situation of the user funds stuck on the thief-associated wallets and not on LUNC directly. However, the general market sentiment and the FUD is splitting investors nearly in half.
CoinGlass data reveals that due to the recent developments surrounding the controversy, short sellers heavily outnumber long buyers. This shows that although the bears are gaining ground as the situation unfolds, LUNC bulls are putting up a strong fight.
LUNC total market cap now at $727 million on the daily chart at TradingView.com
At the time of writing, the token’s downside is only being held by the $0.00012043 support. Investors and traders should focus on defending this support level. If ever this support line is broken, we might see LUNC drop to $0.00009390.
Monitoring the situation is also a must as it is a gauge of the sentiment surrounding Terra Classic and LUNC.
-Featured image from Paxful
