Astroport Loses 60% As Terra Lost $5 Million to Exploit
Astroport, a key component of the new ecosystem, experienced a dramatic decline in value, dropping by a staggering 60%.
Astroport saw significant outflows as hackers exploited a vulnerability in the Terra blockchain. They stole 3.5 Million axlUSDC, 500k USDT, 2.7BTC, and 60m ASTRO tokens.
The nascent Terra 2.0 ecosystem, launched in June 2024, with the promise of a revitalized decentralized finance landscape, has faced a significant setback.
Astroport Declines Amidst Effort to Halt Minting
Astroport, a key component of the new ecosystem, experienced a dramatic decline in value, dropping by a staggering 60%. Additionally, this sudden plummet follows a temporary halt in the Terra blockchain, which was implemented to address a suspected exploit.
Furthermore, the Terra Foundation, responsible for the ecosystem’s development, announced the blockchain suspension, stating they were working with validators to implement an emergency patch. Nonetheless, While the specifics of the exploit remain undisclosed, the situation has cast a shadow over the ecosystem’s initial optimism.
Terra’s Public Optimism Turns Hostility
“Astroport was built with the ambition of fostering a thriving decentralized finance environment. Its fall has raised concerns about the resilience of the new ecosystem, heightening community optimism with its launch but failing to meet expectations,” an X user said.
The swift response from the Terra Foundation, along with the community’s commitment to the project’s long-term success, suggest a proactive approach to address the challenges.
Terraform Labs to Pay $4.5 Billion to Settle SEC Fraud Charges
Terraform announced in June 2024, that its settlement includes $3.5 billion in disgorgement, over $460 million in prejudgment interest, and $420 million in civil penalties. Kwon, who is facing separate criminal charges in South Korea, will contribute $200 million to the Terraform bankruptcy estate.
The SEC’s action follows a trial earlier this year that found Terraform Labs and Kwon liable for orchestrating a “fraudulent scheme” that led to the collapse of TerraUSD in 2022, resulting in billions of dollars in investor losses. The SEC accused Terraform Labs of misleading investors about the stability of TerraUSD and its underlying cryptocurrency, Luna.
In its filing, the SEC emphasized the seriousness of the fraud and the necessity of substantial penalties to prevent future misconduct. “The proposed consent judgment addresses the magnitude of this fraud by imposing significant remedial, punitive, and deterrent remedies, including a multi-billion dollar judgment against Defendants, and provides for a meaningful and speedy recovery for investor victims who collectively lost billions when Defendants’ scheme collapsed,” the SEC wrote.
