Posted on August 23, 2023 at 12:38 PM

Terra Developers Shut Down Website Amid A Phishing Campaign

The website of layer one blockchain network Terra has been targeted by a hacking campaign over the weekend. During this hacking campaign, hackers used unauthorized access to run a phishing campaign on visitors to the site. These visitors are usually forced to link their online and hardware wallets to the website, which is compromised.

Terra’s website was targeted by a hacking campaign

The team behind the Terra network posted a tweet saying that it was crucial to avoid potential phishing campaigns. The platform noted that users needed to halt interactions with sites that used the terra[.]money domain.

“Please do not interact with any sites with the terra(dot)money domain until we put out another update. Although sites are coming back online, the team is still working to secure full access to the domain,” a tweet by Terra said.

Phishing campaigns are rampant across the cryptocurrency industry. In these attacks, the hackers hide their actions behind a legitimate web page. When users link their crypto wallets on the compromised web page, they sign a digital signature giving the hackers access to assets within the wallet.

The developers at Terra have already shut down the website to protect users from this phishing campaign on the platform. The Terra project published a tweet saying that the terra[.]money domain was frozen to prevent more phishing attacks. However, the developer assured the community that the matter would be resolved.

Terra has advised all users to avoid visiting sites using the affected domain. The foundation noted that it will inform users when the site will be clear for visiting again. Terra also said the team was working around the clock to address the issue. However, some delays by third-party service providers were affecting the speed at which the resolution was being implemented.

While sharing these details, Terra highlighted more details and updates on its multichain wallet, Station Wallet. This wallet provider allows users access to decentralized applications (DApps) across many platforms, including blockchain networks.

On August 21, Station Wallet shared critical updates on Station Wallet, saying that users needed to adopt better safety and security. The wallet provider has also urged users to refrain from using Station desktop and mobile applications until the wallet provider confirms the tool’s safety.

Station Wallet also said it would share more details regarding this apparent threat with users. The platform also shared multiple links to the updated browser extensions and the apps that allow users to interact with this wallet.

Woes on the Terra ecosystem

The shutting down of Terra’s website comes over a year since the project collapsed. The previous version of the Terra ecosystem collapsed in May last year. The project failure was one of the largest ever seen in cryptocurrency, with around $40 billion being wiped out of the crypto ecosystem.

Terra’s collapse triggered contagion across the cryptocurrency sector. The collapse led to the demise of other projects, such as Three Arrows Capital and Celsius, that had their bags on Terra before the project’s end.

Despite the failures facing the Terra ecosystem and the criticism that the project received after investors made massive losses, the co-founder, Do Kwon, decided to remain and work on reviving the project. The loyal community later launched Terra 2.0 to retrieve the funds lost in this project.

However, the new Terra project was not embraced as the original one that ranked among the top ten largest cryptocurrencies by market capitalization. Skepticism from most crypto communities led to the project’s poor launch. The token currently ranks as the 184th largest cryptocurrency in market cap.

Terra’s market cap now stands at around $147 million at the time of writing. LUNA has dropped by around 17% in the last seven days amid news of this latest hack on the Terra ecosystem. The token is down by 74% over the past year.

Some crypto community members have failed to show sympathy to the users affected by the ecosystem’s issues. The project has faced many problems in the last year, hampering the trust users have in the project.

One Reddit user noted that those with terra[.]money domains deserved to undergo the hacking campaign. The user also opined that those still in the Terra ecosystem deserved to lose their money to such scams.