Terra in a bid to protect users against the rampant phishing scams on its platform has temporarily closed down its website. In an update released today via X (formerly Twitter), the Layer-1 blockchain indicated that it has frozen its domains till it reaches a full resolution to the ongoing issue.
Further, Terra went on to urge all users to desist from interacting with the platform. More so, Terra added that it is working tirelessly to address the issues. However, the network cited some third-party responses as the delay in the resolution. The project, then beseech users to avoid interacting with the domain till it finally solves the issue.
Meanwhile, the suspension of activities on the network surfaced after hackers compromised the Terra website. Upon gaining access to the platform, the hackers attempted to defraud users through phishing attacks. Thereafter, Terra via two posts on August 19 and 20 respectively, warned users to avoid interacting with the website.
Controversies trailing Terra
The recent attack on the network emanated more than a year after the initial version of the project collapsed in May 2022. According to reports, the meltdown triggered a huge contagion in the crypto landscape after its UST and LUNA tokens collapsed. Consequently, affecting projects and businesses within its blasting radius.
Then, the collapse of the first version of Terra claimed $40 billion worth of investment from the crypto landscape. Amid the tribulations, a handful of Terra’s community members decided to remain on the network with the intention of restoring the project. These community members then launched Terra 2.0 to help users reclaim their lost funds.
Since the launch of Terra 2.0, the project has attracted a host of investors. As of press time, the market capitalization of the project is worth $151.9 million. The news of the recent attack has further compounded the woes of the project. Accordingly, over the last seven days, the token has plummeted by 22%. This is in addition to the over 70% dip the token recorded over the past years.
Presently, the brain behind the initial Terra project, Do Kwon is serving jail terms in Montenegro for forging traveling documents. In March 2023, Do Kwon was arrested at the Podgorica Airport en route to Dubia. Before then, the whereabouts of the Terra co-founder were unknown. Following his arrest, prosecutors in the United States and Korea attempted to extradite him to kickstart his trial regarding the collapse of Terra.