The Terra blockchain has been abruptly suspended due to a suspected exploit, leading to a significant drop in the value of Astroport’s ASTRO token.
The halt, effective at block height 11430400, has caused all user transactions to be paused as Terra’s team works with Phoenix-1 validators to implement an emergency patch to address the breach.
60 million ASTRO tokens stolen
According to Cyvers Alerts, the exploit has resulted in the theft of approximately 60 million Astroport (ASTRO) tokens, along with 3.5 million Circle USD (USDC), 500,000 Tether (USDT), and 2.7 Bitcoin (BTC).
This massive theft has severely impacted the ASTRO token’s market performance.
Before the exploit was publicly disclosed, the stolen 60 million ASTRO tokens were valued at around $2.7 million.
However, the token’s price has since nosedived from approximately $0.045 to as low as $0.01313, marking a decline of over 60% before recovering to around $0.02058 at press time.
As the token’s value begins to stabilize, it is currently trading around $0.018. Despite representing only 5.5% of the total ASTRO supply, the loss has set a new all-time low for the token.
The Exploit further complicates Terraform Labs’ financial problems
In addition to the blockchain’s suspension, Terra’s situation has been further complicated by the recent financial troubles of Terraform Labs.
On June 12, the company reached a settlement with the United States Securities and Exchange Commission (SEC) totalling around $4.47 billion.
This settlement includes $3.6 billion in disgorgement fines, a $420 million civil penalty, and nearly $467 million in prejudgment interest.
The settlement also holds former CEO Do Kwon accountable for approximately $204 million in damages resulting from the Terra ecosystem’s collapse, which inflicted $40 billion in losses on investors.
The Terraform Labs crisis has led to additional disruptions, including a planned reopening of the Shuttle Bridge on July 19. This move was intended to allow users to redeem their assets on the Terra Classic blockchain.
However, after a 30-day redemption period, the Shuttle Bridge will be permanently closed, and any remaining assets will be destroyed.
The unfolding events underscore a turbulent period for the Terra ecosystem and its associated assets, highlighting ongoing challenges in the cryptocurrency space.
Besides the impact on the stolen tokens, Terra Blockahin’s native token, Terra (LUNA) also saw a sharp drop to $0.3845 from trading above $0.4. And although it has recovered to $0.3941 at press time, it is still down 2.71% over the last 24 hours.
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