The Terra blockchain recently faced a significant exploit, resulting in the theft of approximately 60 million $ASTRO, 3.5 million $USDC, 500,000 $USDT, and 2.7 $BTC.
The attacker leveraged a reentrancy vulnerability in the timeout callback of ibc-hooks, a flaw that was disclosed back in April this year.
Terra blockchain was exploited for ~60M $ASTRO, 3.5M $USDC, 500k $USDT, and 2.7 $BTC.
The attacker exploited a reentrancy vulnerability in the timeout callback of ibc-hooks. The vulnerability was disclosed in April this year:https://t.co/CY39X28KyE https://t.co/hY9xA40hbJ
— Beosin Alert (@BeosinAlert) July 31, 2024
Terra Team Responds Quickly To The Situation
In response to the exploit, the Terra blockchain was temporarily halted at block height 11,430,400, suspending transaction processing to address the security breach. After a brief pause, block production resumed at around 4:19 AM UTC today, following the completion of an emergency chain upgrade.
📣Attention Terra users: Please be advised that the chain will be halted shortly at block height 11430400 and transactions will not be processed during this time.
We will be working with the validators on Terra (phoenix-1) to apply an emergency patch thereafter to remediate a…
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) July 31, 2024
The Terra development team acted swiftly to mitigate the damage and secure the network. Validators holding over 67% of the voting power have already upgraded their nodes to prevent a recurrence of this exploit, with additional validators expected to follow suit shortly.
The Terra chain has resumed block production at approximately 4:19 AM UTC today and the emergency chain upgrade is now complete.
Transactions are now being processed, and users may resume normal activities.
Validators holding over 67% of the voting power on Terra have upgraded…
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) July 31, 2024
With the emergency upgrade complete, the Terra blockchain is now processing transactions again, allowing users to resume their normal activities. This rapid response underscores the resilience and commitment of the Terra community to maintain the security and functionality of the network.
The incident highlights the ongoing challenges faced by blockchain projects in ensuring robust security measures. As the Terra team continues to monitor the situation and implement further safeguards, users are advised to stay informed and vigilant.
Despite this setback, the Terra blockchain’s swift recovery and the proactive measures taken by its validators demonstrate a strong commitment to network security and stability. The incident serves as a reminder of the importance of regular security audits and prompt action in response to identified vulnerabilities within the rapidly evolving blockchain ecosystem.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
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