Top Developer Says Terra Classic Incident is a Rugpull, Not a Hack

reXx made these claims following a period of an in-depth investigation into the latest Terra classic (LUNC) incident.

@CosmoSreXx, commonly known as reXx, a Terra Classic developer and prominent community member, has alleged that the Terraport incident is a rug pull and not a hack, as popularly described. These claims emerged after an in-depth investigation into the event’s cause.

Immediately after the event, reXx already had his doubts, especially because he called attention to multiple security breaches on the Terraport platform’s code as far back as April 2, but the alarms fell on deaf ears. reXx even suggested that Terraport undertake a Certik audit, but this was not acted upon.

Investors of @_Terraport_ please read this article as it explains multiple major security breach on its platform.

Keep in mind that this was easily viewable to the public. Be sure to do your due diligence before investing. https://t.co/3qOtTzze5u

— reXx™ (@CosmoSreXx) April 2, 2023

Amid the investigation into the event, reXx discovered that three wallets found inside the Terraport code were responsible for the exploit, this further heightened suspicions that it was an insider job. However, he acknowledged that this was not a conclusive finding and that access to the source code would be necessary to verify it.

Following further discoveries, reXx insisted that the source code be made public. Nonetheless, his request was not granted by the Terraport team. The developer later concluded that it was an insider job. However, he clarified that he is not alleging the involvement of the entire Terraport or TerraCVita team but rather that it traces back to whoever coded the Terraport DEX.

I’ve come to a conclusion that this is an inside job. I am not saying all team members of Terraport knew/were apart of this, but this leads back to who coded this “DEX”.

— reXx™ (@CosmoSreXx) April 11, 2023

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reXx further narrowed the event’s originator to a single Terra Classic wallet. According to him, the owner of the wallet in question is responsible for the incident. He noted that the rug was implanted into the Platform’s code as far back as January, and the team should have identified it since then.

I’m actually pretty irritated how nobody is talking. We are talking about millions of dollars of investors (YOU) funds compromised. This is 100% a RUGPULL built into the code since early January. Blockchain data does not lie. pic.twitter.com/b61eyjo2tA

— reXx™ (@CosmoSreXx) April 12, 2023

Community Reactions

However, Terraport insisted yesterday that an insider did not carry out the incident. The recent disclosures have elicited mixed reactions from the Terra Classic community. LUNC DAO, a unique Terra Classic validator, particularly, agrees to reXx’s claims.

LUNC DAO alleged that the event was carried out by at least one person from the Terraport team, taking into account the LUNC wallet identified to have caused it. He mentioned that the wallets involved belonged to team members, and the Terraport platform was coded with the wallets embedded in them.

He pointed out two wallets, claiming that the one reXx highlighted was the original thief, while the second wallet belonged to an accomplice or someone who was not directly involved in the theft but was somewhat negligent.

The ~$5M theft of all $TERRA user funds was provably an inside job by at least 1 person on the Terraport team

This doesn’t mean others on the team knew. Many were clearly naive or negligent. But at least 1 team member did it, while the remainder of the team at best relied on…

— Crypto Susanna (@LUNCDAO) April 12, 2023

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