The recent Terra hack has not impacted Terra Classic, resulting from an upgrade by Genuine Labs that has patched vulnerabilities and ensured security.
Terra, a Phoenix-1 blockchain, was the victim of an exploit due to using an internally derived IBC-go 7.3 version that had not been updated since last year. In contrast, Terra Classic maintained inter-blockchain communication (IBC) dependency and remained unaffected by a significant upgrade by core developer Genuine Labs months ago.
Terra Classic Evaded a Security Hack
Despite a recent breach on Terra (Phoenix chain), Terra Classic, the original Terra blockchain by Terraform Labs, remained unaffected. A vulnerability in a third-party module called IBC hooks, which is utilized for cross-chain contract interactions and token transfers, was exploited by an unidentified attacker.
Genuine Labs, the developers of Terra Classic’s core, utilized the X platform to inform the broader community that the breach does not affect LUNC.
“We are pleased to inform you that Terra Classic has not been impacted by the most recent exploitation of Terra Money (phoenix-1) since we implemented a patch in May as part of our V3 upgrade,” stated Genuine Labs.
LUNC also relies on inter-blockchain communication (IBC) protocols to facilitate the transmission of tokens between other blockchains.
Ethan Buchman, the co-founder of Cosmos, conveyed his disappointment with the most recent Terra hack, as the community is already grappling with the bankruptcy of Terraform Labs. He stated that Terra was initially corrected for vulnerability, but the June upgrade inadvertently reverted the changes.
Security Measures and Community Response
The Terra community has been vocal about the recent breach. The ASTRO hack on Terra was the subject of a report that expressed regret. The report also noted that Terra was initially patched, but the remedy was inadvertently reverted during an upgrade.
Subsequently, this oversight enabled the exploit to transpire. It was challenging to remain current with security updates due to utilizing a forked version of IBC. This incident necessitates a concerted effort to reduce conflicts and guarantee timely updates throughout the ecosystem.
The Terra (Phoenix chain) was exploited, as reported in a report, due to the use of an outdated fork of IBC-go 7.3.x, which was last modified in September 2023. This version did not include the critical exploit repair discovered in April 2024.
In response to the breach, Terra upgraded to IBC-go>7.4.1 to safeguard against the vulnerability. A user observed that LUNC also maintains an internal IBC-go dependency. However, the security exploit was averted due to a substantial upgrade conducted by Genuine Labs in May 2024, which included a correction to v7.4.0.
