HomeNewsTerra Classic Turmoil: Developer Uncovers Insider Rug Pull in Explosive Investigation

Terra Classic Turmoil: Developer Uncovers Insider Rug Pull in Explosive Investigation

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  • Developer reXx alleges Terraport incident was a rug pull, not a hack.
  • Suspicions arise from three wallets found in Terraport code, suggesting an insider job.

Developer Points to Insider Involvement

After a thorough investigation into the Terra Classic (LUNC) incident, developer and Terra Classic community member @CosmoSreXx, also known as reXx, has claimed that the Terraport event was a rug pull, rather than a hack. These allegations surfaced after reXx delved deep into the cause of the event.

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Despite raising concerns about multiple security breaches in Terraport’s platform code as early as April 2, reXx’s warnings went unheeded. He even recommended a Certik audit, but the Terraport team did not act on it.

Connecting the Dots

During his investigation, reXx found that three wallets within the Terraport code were involved in the exploit, heightening suspicions of an insider job. He noted that access to the source code would be required for confirmation.

After further findings, reXx demanded the source code be made public, but the Terraport team did not comply. He eventually concluded that it was an insider job, but clarified that he was not accusing the entire Terraport or TerraCVita team—only the individual who coded the Terraport DEX.

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reXx traced the event back to a single Terra Classic wallet, asserting that the wallet’s owner was responsible for the incident. He observed that the rug had been embedded in the platform’s code since January, and the team should have detected it.

Mixed Community Responses

Despite Terraport’s denial of any insider involvement, the Terra Classic community has shown varied reactions to these revelations. LUNC DAO, a unique Terra Classic validator, has expressed agreement with reXx’s claims.

LUNC DAO suggested that at least one person from the Terraport team was involved, considering the identified LUNC wallet. They remarked that the wallets in question belonged to team members, and the Terraport platform was coded with these wallets embedded. LUNC DAO identified two wallets, alleging that one was the primary culprit, while the second wallet was either an accomplice or someone indirectly linked to the theft through negligence.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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