The Terra blockchain has temporarily suspended its operations, halting at block height 11430400. This decision was announced after a suspected exploit, which resulted in significant losses.
Terra’s team, in collaboration with Terra (Phoenix-1) validators, is working on an emergency patch to address the issue. The exploit, as revealed by Cyvers Alerts, led to the theft of around 60 million Astroport (ASTRO) tokens, 3.5 million USD Coin tokens, 500,000 Tether tokens, and 2.7 Bitcoin.
Following the news, the ASTRO token’s value plummeted by over 60%, dropping from approximately $0.045 to a low of $0.01313. The stolen tokens, initially valued at around $2.7 million, are now worth about $1.08 million as the token price stabilizes at $0.018. This event has set a new all-time low for the Astroport marketplace.
The suspension and exploit come on the heels of Terraform Labs’ recent legal troubles. On June 12, the company agreed to a $4.47 billion settlement with the United States Securities and Exchange Commission (SEC), which included disgorgement fines, a civil penalty, and prejudgement interest. Former CEO Do Kwon was held accountable for approximately $204 million due to the Terra ecosystem’s collapse, resulting in $40 billion in investor losses.
In a related development, Terraform Labs announced plans to reopen the Shuttle Bridge, allowing users to redeem sealed assets on the Terra Classic blockchain. This reopening follows a bankruptcy court order in the firm’s Chapter 11 case, enabling the undelegation and burning of 150 million LUNA tokens. Users have a 30-day window to redeem their wrapped assets, after which the Bridge will permanently close, and remaining assets will be destroyed.
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