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Terra blockchain restarts but crashes ASTRO token by 60%; Here’s what we know

Terra blockchain restarts but crashes ASTRO token by 60%; Here’s what we know

Cryptopolitan2024/07/30 16:00
By:By Shraddha Sharma

Share link:In this post: Terra temporarily halts operations after hackers exploited a previously known flaw. ASTRO takes the hit, among others, losing 60 million tokens. Terra blockchain relaunches after emergency upgrade.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investme

Terra blockchain was exploited on July 31, leading to a temporary halt in its operations. It has now restarted but concerns erupt from the vulnerability that was exploited. The attacker reportedly exploited a previously known flaw in the system, resulting in the theft of approximately 60 million ASTRO among other tokens.

Some early estimates believe the attack led to over $4 million in losses. Meanwhile, Terra said that an emergency patch was applied at block height 11430400.

Terra network exploit impacts ASTRO

On the morning of July 31, Terra blockchain announced that it was temporarily halting operations. It was revealed that the chain was attacked which led to the theft of around 60 million ASTRO, 3.5 million USDC, 500,000 USDT, and 2.7 BTC. Terra applied an emergency patch at block height 11430400. Reportedly, the attacker took advantage of a previous vulnerability in their system. Despite that, the Astroport protocol that is used for liquidity on the Cosmos network seems to be the biggest victim in the $4 million reported exploit.

ASTRO token dipped over 60% in value after the attack. At the time of writing, the price stands at $0.023 on CoinGecko, down 50%.

ASTRO token dips | Source: CoinGecko

As per Andres Monty, co-founder of Range security, the vulnerability was identified and fixed in the past. Monty suggests that IBC Rate Limits could have helped prevent the issue. Rate limits are known to control the speed and amount of transactions, which can potentially stop malicious activities.

Terra blockchain restarts after exploitation

The exploit is dubbed “reentrancy vulnerability” and was reportedly found in the timeout callback of IBC-hooks. Generally, the loophole can let hackers repeatedly call a function within the system before the previous function call is finished. The process enables attackers to manipulate the system and steal funds, a cyber flaw that was discussed in April.

 

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The vulnerability, labeled ASA-2024-007, affects several versions of the IBC-go software. The software is used in chains that support IBC (Inter-Blockchain Communication) and allows code uploads for smart contracts. Developers and maintainers often rush to update their systems to the latest patched versions of IBC-go to deal with similar attacks.

As per the official update, “Validators holding over 67% of the voting power on Terra have upgraded their nodes to prevent the exploit from recurring.”

At press time, Terra blockchain has restarted normal processes after the attack halted the chain for several hours. Terra has also confirmed that the emergency chain upgrade has concluded.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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