TechFlow reports that the Terra blockchain network suffered a security breach, resulting in approximately $3 million worth of tokens being stolen. The attacker exploited a known vulnerability associated with the third-party IBC hooks module, which is used for cross-chain contract calls and token transfers. Affected assets include the USDC stablecoin and Astroport tokens.
The Terra team has implemented emergency measures to prevent further losses and is coordinating with validators to deploy an emergency patch to fix the vulnerability.
Zaki Manian, co-founder of Sommelier Finance, explained that this vulnerability was identified months ago and had been patched within the Cosmos ecosystem in April. However, Terra’s June upgrade failed to include this patch, leaving the network exposed and leading to the attack. Notably, Terra is a hard fork of the Terra Classic network following the collapse of its algorithmic stablecoin UST's dollar peg in 2022.
