Terra Exploited Due To Known Vulnerability

Alpha Team
July 31, 2024

🚨 Major Exploit Hits Terra Blockchain

Significant Security Breach: The Terra blockchain suffered a security breach leading to the theft of tokens. An attacker exploited a known vulnerability in the IBC hooks module, impacting cross-chain token transfers. Over $4 million in tokens, including USDC and ASTRO, were stolen, causing ASTRO’s value to drop by 60%.

Emergency Response: In response to the exploit, Terra quickly implemented an emergency measure to prevent further token theft. The team worked closely with network validators to apply a patch that aimed to stop the exploit and secure the system.

Patch Management Issues: The vulnerability was originally identified and patched in April across the Cosmos ecosystem, but Terra’s June update did not include this patch, leading to renewed exposure. As a result, the attacker was able to steal the tokens using the same exploit.

️ On today's Top Picks:

📝 Tether releases Q2 2024 Attestation Report.
💸 Mt Gox moves $3.1B of Bitcoin $BTC.
🚀 Movement Labs launches Public Testnet.
🏦 US Federal Reserve leaves interest rates unchanged.

Read time: ⏰ 7 minutes

Crypto News

• ⭐️ Tether releases Q2 2024 Attestation Report revealing $5.2B in net profit & more.

• ⭐️ Mt Gox moves $3.1B of Bitcoin $BTC; $2.25B potentially sent to BitGo.

• Grayscale Bitcoin $BTC Mini Trust begins trading following SEC approval.

• Paradigm Capital deposits an additional ~$129M of Ethereum $ETH to Anchorage Digital.

• California DMV digitizes 42M car titles on Avalanche $AVAX in collaboration with Oxhead Alpha.

• Compound Finance $COMP reaches truce with crypto whale Humpy following $24M "governance attack".

• US SEC charges BitClout founder Nader Al-Naji for allegedly evading federal securities laws & defrauding investors.

• ZKX Protocol discontinues operations citing several factors; ZachXBT alleges foul play.

• DraftKings shuts down NFT business citing legal developments as it potentially faces class action lawsuit.

Alpha

• Eclipse launches Mainnet; currently open to developers.

• ⭐️ Movement Labs launches Public Testnet alongside Building The Parthenon campaign on Galxe.

• Router Protocol launches Router Chain Mainnet.

• Blackwing launches support for Solana with Blackwing Earn.

• Forma launches Discord roles for owning Modularium NFTs.

• Union posts "📸" on X, hinting of a potential snapshot.

• 3DNS launches Mystery Box campaign in collaboration with Base Onchain Summer.

Airdrops

• Movement Labs Airdrop Strategy by Olimpio.

• Layer3 $L3 airdrop claim is live.

• Lava Network $LAVA airdrop is live.

• LiquidSwap $LSD airdrop claim is live.

• ICYMI Swell snapshots Pearls; $SWELL TGE details coming soon.

Finance News

• ⭐️ US Federal Reserve leaves interest rates unchanged at 5.25%–5.50%.

• Circle valued up to $5.25B on secondary markets as it considers going public.

• Microsoft $MSFT slides despite better-than-expected earnings & revenue.

• Meta $META agrees to $1.4B settlement in biometric data lawsuit.

• Berkshire Hathaway continues selling Bank of America $BAC.

• ASML $ASML surges amid reports of exemptions from US restrictions.

• CrowdStrike $CRWD plunges amid reports of Delta Air Lines $DAL seeking compensation.

Security and Exploits

• SlowMist Weekly Security Report highlights ~$1.99M in losses.

• ⭐️ Terra exploited for ~$4M of various tokens due to reentrancy vulnerability.

• SlowMist alerts of a TonConnect SDK vulnerability allowing attackers to impersonate trusted DApps.

• ZachXBT posts investigation into convicted UK hacker Gurv (Gurvinder Bhangu) on X.

• Android Spyware 'Mandrake' hidden in apps on Google Play since 2022.

Token Unlocks

• Echelon Prime / 750K $PRIME / ~$6M / JUL 31
• Optimism / 31.34M $OP / ~$51M / JUL 31
• Manta Network / 1.87M $MANTA / ~$2M / JUL 31
• dYdX / 8.33M $DYDX / ~$10M / AUG 01
• Sui / 64.19M $SUI / ~$46M / AUG 01
• ZetaChain / 53.89M $ZETA / ~$30M / AUG 01
• Galxe / 4.17M $GAL / ~$12M / AUG 02
• Wormhole / 600M $W / ~$151M / AUG 03
• Ethena / 14.89M $ENA / ~$6M / AUG 04
• Mode / 185.30M $MODE / ~$4M / AUG 05

Funding

• Hyperbolic, an AI cloud platform; raises $7M in Seed funding led by Polychain Capital & Faction.

• Mintify, an Interface & execution engine For NFT trading; raises $3.4M in funding.

• Agent, an all-in-one platform for managing Web3 Sub-Accounts; raises $1M in Pre-Seed funding.

• aPriori, a liquid staking platform on Monad; raises an undisclosed amount in funding from Binance Labs.

• Mycel, an account transfer protocol; raises an undisclosed amount in Angel funding.

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PROTOCOL	ASSETS	APY
Merkl (Arbitrum)	USDEUSDT	135.51%
Abracadabra Spell (Arbitrum)	MIMUSDCUSDT	40.96%
Notional V3 (Ethereum)	NUSDC	32.47%
BFX (Blast Futures) (Blast)	USDB	31.17%
Storm Trade (Ton)	USDT	29.09%
Gains Network (Arbitrum)	USDC	28.82%
Extra Finance (Base)	USDZUSDC	25.77%
Anzen V2 (Ethereum)	SUSDZ	24.42%