Immediate Website Shutdown
Layer-1 blockchain Terra has acted swiftly, suspending its official website to protect its expansive user base from potential hackers and phishing attempts. The company, demonstrating its commitment to user security, urged its users to refrain from accessing the site pending an official update.
Hacking Attack Prompts Action
The prompt decision to halt all website activities stems from a series of hacking attacks Terra endured over the past weekend. Terra took to their official channels on August 19, sounding the alarm and urging users to avoid interactions with the Terra Money website until more clarity is provided.
Recalling Terra’s 2022 Meltdown
May 2022 proved a tumultuous period for the crypto community. Terra’s ecosystem, which housed the prominent TerraUSD (UST) and Luna tokens, faced an abrupt downfall. Founded by Stanford alumnus Do Kwon, Terra’s vision was to transform the decentralized finance arena using its key tokens: UST and Luna.
Luna’s dramatic surge to nearly $120 per token was overshadowed by its subsequent sharp decline, fueled by rumors of fraudulent activities. This downfall was catalyzed by a sudden withdrawal of $2 billion from the Anchor Protocol, leading to a ripple effect that saw Luna and UST getting delisted from numerous crypto exchanges.
In the aftermath of this collapse, Do Kwon’s sudden exit to Singapore only intensified the scrutiny. With an estimated loss for 200,000 investors and the ecosystem’s value crashing from a staggering $60 billion, Kwon became a person of interest for law enforcement agencies. His eventual arrest in Montenegro marked the culmination of these events.
The Surge in Crypto-Related Cyberattacks
Recent data indicates a disconcerting rise in cyberattacks targeting the crypto sector. Q1 2023 alone saw a whopping 6 million registered attacks.
Prominent figures in the tech industry, including Nikesh Arora, CEO of Palo Alto Networks, have voiced their concerns. Arora emphasized the need for companies to evolve and reinforce their cybersecurity infrastructures. Several crypto enterprises, such as Cypher Protocol and Zunami Protocol, have unfortunately fallen prey to hackers recently, underscoring the ever-growing need for bolstered security measures.