Binance CEO Responds To Terra Classic (LUNC) Hack

CZ noted that, although the Binance team is working towards assisting the community, Binance has not identified any of the stolen assets on its platform.

Binance CEO Changpeng “CZ” Zhao has responded to the Terraport hack which drained the platform’s liquidity account of billions of Terra Classic (LUNC) tokens. CZ’s remarks came in response to calls from the community.

Dr. Rajia Bibi, CEO of DRIV3N LIMITED and crypto enthusiast, called CZ’s attention to the hack shortly after it gained limelight. In response, CZ asked that the appropriate parties submit a customer service case as soon as possible, as going through him would make the process slower.

Please submit a CS case ASAP. We have a SOP for it, it’s faster than going through me. I don’t know which account/address, etc. And I am a “slow middle man”.

— CZ 🔶 Binance (@cz_binance) April 10, 2023

An hour later, the Binance Chief disclosed that the exchange’s security team had reviewed the transactions and found none of the stolen funds on Binance. CZ highlighted that some of the funds were sent to MEXC Global and KuCoin.

Our team reviewed the transactions. Our analysis shows no funds were deposited in Binance. Some of the hacked funds was deposited to MEXC and KuCoin. Not much we can do here.

— CZ 🔶 Binance (@cz_binance) April 10, 2023

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MEXC Freezes Millions of LUNC

Responding to CZ’s remarks, the MEXC Global team noted that it was working collaboratively with Binance to ensure that the hacked funds are frozen. 

The MEXC team has been working with Binance in the shortest possible time to freeze illicit assets.

MEXC has always acted fast in fighting evil. We have long cooperated with other exchanges to jointly fight against illegal behaviors and promote the sound development of the… https://t.co/VLTBBrkskR

— MEXC Global (@MEXC_Global) April 10, 2023

ReXx, a Terra Classic community member and one of the first people to call attention to the hack, disclosed shortly after the event gained momentum that he was in talks with MEXC to freeze some of the hacked assets deposited into the exchange. ReXx noted that MEXC had frozen $124K+ worth of the assets.

Here is the current balance sent to MEXC exchange that is now FROZEN.

I am working with the remaining exchanges to freeze the other transactions. pic.twitter.com/pRfJdOybYN

— reXx™ (@CosmoSreXx) April 10, 2023

MEXC also immediately suspended LUNC deposits on its platform to address the situation. Shortly after the disclosure, ReXx revealed that an additional 600 million LUNC in pending deposits has been frozen by MEXC. He noted that he would send out a tweet on how investors can reclaim their funds when the dust settles.

KuCoin Moving to Protect Users

Johnny Lyu, the CEO of KuCoin, also provided a response to the development. According to Lyu, KuCoin is currently taking measures to ensure that it protects users’ assets. He noted that the KuCoin team will continue to pay attention to the development.

KuCoin team has been taking actions to protect the users and will continue to keep a high attention on it.

— Johnny_KuCoin (@lyu_johnny) April 10, 2023

ReXx had earlier disclosed that he was in direct communication with the KuCoin team, and they would be freezing some of the assets deposited to the platform once they identify the transactions. Binance, MEXC and KuCoin have blacklisted the wallets connected to the hack.

Recall that the Terraport hack occurred earlier today, as previously reported. TerraCVita confirmed through the official community Telegram group that the total assets stolen include 15.1 billion LUNC, 9.4 million USTC and 9.1 million TERRA.

TerraCVita disclosed that 8.6 billion of the funds on centralized exchanges have been frozen, but did not specify the asset in question. They noted that they are working with TFL and the appropriate exchanges to help recover the assets.

Shortly after the hack, speculations that Tobias “Zaradar” Andersen orchestrated it emerged. Zaradar has so far dispelled these claims, noting that he even offered a security review for TerraCVita but the request was ignored.

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