- 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.
Investors of @_Terraport_ please read this article as it explains multiple major security breach on its platform.
Keep in mind that this was easily viewable to the public. Be sure to do your due diligence before investing. https://t.co/3qOtTzze5u
— reXx™ (@CosmoSreXx) April 2, 2023
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.
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.
The ~$5M theft of all $TERRA user funds was provably an inside job by at least 1 person on the Terraport team
This doesn’t mean others on the team knew. Many were clearly naive or negligent. But at least 1 team member did it, while the remainder of the team at best relied on…
— Crypto Susanna (@LUNCDAO) April 12, 2023
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.