TerraCVita Takes Measures to Track Stolen Funds, Partners with Law Enforcement

According to a tweet by Terraport Finance, significant developments have unfolded following the security breach at Terraport. TerraCVita, the group responsible for Terraport, has taken swift action by engaging law enforcement to assist in recovering the stolen funds. This partnership aims to bring the perpetrators to justice and retrieve the lost assets.

UPDATE:

– TerraCVita team, assisted by community members and CEX involved, is working to recover the stolen funds, over 60% have been blocked by CEX.

– The platform was temporarily suspended pending an in-depth check of the contract and a full internal and external third…

— Terraport Finance (@_Terraport_) April 11, 2023

In the midst of these efforts, it has been reported that the exploiters have transferred over 985 million Terra Classic (LUNC) to the crypto mixer service Tornado Cash. This unfortunate development raises concerns about the effectiveness of TerraCVita’s fund monitoring capabilities. Questions have emerged regarding how well the platform safeguards and oversees the funds under its purview.

To shed light on the matter, reXx, a vigilant member of the LUNC community, has shared valuable insights. Emphasizing transparency and accountability, reXx expressed concerns that current investors should not bear the consequences of TerraCVita’s alleged negligence. He revealed that the assets currently frozen were a direct result of his and Vegas Morph’s efforts, debunking any claims made by TerraCVita suggesting otherwise.

Of particular interest is the $88,649 worth of funds that were tunneled to Tornado Cash, amounting to over 800 million LUNC at the time. Unfortunately, the exploit has rendered these assets irretrievable.

TerraCVita had previously asserted its ability to track stolen funds diligently and maintain direct communication with exchanges. However, the recent developments have raised doubts about the effectiveness of the group’s monitoring efforts. These concerns have been exacerbated by the prolonged delay in completing the Certik audit, which has remained at 85% for four weeks—an unusually long duration for audits of this nature.

In response to the severity of the situation, TerraCVita has expressed satisfaction in securing the services of a specialized law enforcement agency dedicated to combating crypto-related crimes. While the agency’s name has not been disclosed, this collaboration underscores TerraCVita’s commitment to recovering the stolen funds and holding the perpetrators accountable.

The Terraport security breach, which occurred in April, resulted in the loss of 15.1 billion LUNC, 9.1 million TERRA, and 9.4 million USTC. The transfer of 985 million LUNC to Tornado Cash represents only a fraction of the total stolen funds. However, this development raises concerns about the effectiveness of TerraCVita’s monitoring practices and the potential presence of negligence.