Attackers exploit IBC hooks vulnerability to steal tokens on Terra blockchain

BlockBeats news, July 31, according to The Block, the Terra blockchain reported a security vulnerability on its network, resulting in token theft.

An unknown attacker exploited a known vulnerability associated with a third-party module called IBC hooks, which is used for cross-chain contract calls and token transfers.

The attacker exploited this vulnerability to steal USDC stablecoins and Astroport tokens from bridged assets. Preliminary estimates show that approximately $3 million worth of tokens may have been affected.

After discovering the incident, Terra took emergency measures to prevent further losses and ensure that no additional tokens were stolen while the vulnerability was fixed. Terra coordinated with its validators to apply an emergency patch to fix the suspected vulnerability.

"We will work with Terra's validators and then apply an emergency patch to fix the suspected vulnerability," Terra said.