Here is First Exchange to Return Hacked LUNC Funds

Some of the stolen Terra Classic (LUNC) funds from the Terraport hack remain frozen by several exchanges.

Following the Terraport hack that stole billions of Terra Classic (LUNC) tokens and millions of TerraClassicUSD (USTC), several exchanges liaised with internal investigation efforts to freeze portions of the stolen assets deposited on their platforms. SimpleSwap is the first to commit to returning the assets among these exchanges.

The development was disclosed by the Terraport team in a recent tweet.

🚨Update🚨

We are delighted to announce that @SimpleSwap_io is the first organization to commit to returning stolen @_Terraport_ funds which they secured off-chain.❤️ This is great news, thank you. 🙏

Together we can #cleanupcrypto

— TerraCVita (@TerracVita) April 30, 2023

There is limited information on the amount of LUNC or USTC the exchange plans to return, and the Terraport team has failed to disclose the figure. Recall that Terraport confirmed that the exploiter drained a total of 15.1 billion LUNC tokens, 9.4 million USTC, and 9.1 million TERRA, the platform’s native token.

Although several exchanges have confirmed that they have frozen some of the assets, no other exchange besides SimpleSwap has committed to returning the frozen funds. As previously reported by The Crypto Basic, the Terraport team disclosed two weeks back that up to 55% of the stolen funds had been frozen and assured investors that all the frozen funds would be returned.

Shortly after the hack, on-chain investigations carried out by reXx, a prominent Terra Classic community member, found that the exploiter was leveraging SimpleSwap to move the funds. reXx noted that the SimpleSwap team was already liaising with the affiliated exchanges to freeze and return the assets.

The “attacker” of @_Terraport_ is using @SimpleSwap_io and the simpleswap team is working with the affiliated exchanges on the matter. We are all doing our best to recover all funds from the exploit. We have located almost all wallets that has investors funds from TP.

— reXx™ (@CosmoSreXx) April 11, 2023

Moreover, on the day of the hack, reXx publicly disclosed that MEXC Global had already frozen $124K+ worth of the stolen assets deposited on its platform. Exchanges such as KuCoin and Gate.io also moved to protect investors.

As reported by The Crypto Basic, TerraCVita, the team behind Terraport, noted two weeks ago that £1 million had been frozen by exchanges. Rex Harrison, a senior group member, launched a proposal to freeze $2 million worth of the assets found on the Terra Classic chain. However, the community rejected the proposal.