On July 31, an attacker attacked the Terra (Phoenix-1) network, stealing digital assets totaling about $5.2 million.
📣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…
According to the developers, the blockchain was stopped at an altitude of #11,430,400 to make corrections.
"We are working with Terra validators to apply an emergency patch to fix the alleged vulnerability," the publication says.
According to analysts at Beosin Alert, the hacker managed to withdraw 60 million ASTRO, 3.5 million USDC, 500,000 USDT and 2.7 BTC.
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
The criminal took advantage of a re-entry exploit linked to the third-party IBC hooks module, which facilitates calls to contracts between chains and the movement of tokens, the researchers claim.
The company also clarified that this vulnerability was discovered back in April.
Three and a half hours after the shutdown, Terra resumed production of blocks after an emergency update. At the time of publication of the post, 67% of validators had updated nodes to prevent a repeat attack.
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…
In a comment to The Block, Sommelier Protocol co-founder Zaki Manian explained that the exploit discovered a few months ago was almost immediately fixed in the Cosmos ecosystem. However, Terra updates did not include this patch.
"It looks like the Terra upgrade in June didn't apply the fix. All USDCS from the [multichain platform] Axelar connected to Terra were stolen using a vulnerability in IBC hooks. A large amount of ASTRO was also stolen," he said.
After the attack, ASTRO's quotes collapsed by 54% — the coin fell from $0.45 to $ 0.2. Its capitalization fell below $ 10 million. At the same time, the native assets of the Terra ecosystem have hardly changed in price.
Recall that in June, Terraform Labs CEO Chris Amani asked the community to take control of the blockchain, as the organization will cease to exist.
https://forklog.com/exclusive/spiral-smerti-terra-kak-i-pochemu-luna-i-ust-poterpeli-krah