Terra.money Website Blocked to Stop Further Phishing Attacks

Jimmy Aki
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The website of Layer-1 blockchain project Terra has been temporarily shut down to safeguard users from continuous phishing scams. This decision comes in the wake of a recent hacking incident over the weekend, where malicious actors attempted to deceive users through phishing attacks.

Terra Halts Website Action

On August 22, Terra made an official announcement through X (formerly Twitter), confirming the successful freezing of terra.money domains to thwart ongoing user phishing scams.

In addition, it strongly advised its users to refrain from accessing any sites under the terra.money domain while the temporary freeze is in effect.

The firm implored customers to be patient until an official ‘all-clear’ notice is issued. Terra acknowledged that its team is tirelessly working to resolve the situation; however, certain delays have been encountered due to third-party responses.

Nevertheless, despite these challenges, the company expressed gratitude for their customers’ patience and understanding throughout this process.

The announcement also provides updates on Terra’s multichain wallet, Station Wallet. This wallet enables users to engage with decentralized applications on various blockchain networks, including Terra, Juno, and Kujira.

On August 21, significant security updates were released for Station Wallet, with users advised to withhold usage of Station desktop and mobile apps until the wallet’s safety is confirmed.

The decision to freeze the terra.money domains follow a recent breach of the Terra website by hackers attempting phishing attacks over the weekend.

Terra had initially issued a warning on August 19, cautioning users against engaging with any terra.money domains until further updates are provided.

This warning was reiterated on August 20, emphasizing the use of official communication channels for updates.

Terra Multiple Problems

In May 2022, Terra’s interconnected cryptocurrency ecosystem suffered a catastrophic collapse, resulting in the loss of approximately $40 billion in value. This event sent shockwaves throughout the broader cryptocurrency market.

Following this incident, the United States Securities and Exchange Commission (SEC) launched legal action against Terraform Labs and its founder, Do Kwon. The lawsuit alleged their involvement in a massive crypto asset securities fraud scheme involving billions of dollars.

In a statement dated February 16, 2023, the SEC asserted that Kwon and Terraform Labs had been selling a network of interconnected crypto asset securities, many of which lacked proper registration.

Notably, Terraform Labs’ collapsed algorithmic stablecoin, TerraClassicUSD (USTC), and its associated cryptocurrency, Terra Luna Classic (LUNC), were highlighted as areas of concern.

Additionally, in April 2023, South Korean prosecutors filed numerous fraud charges against Daniel Shin, Terra’s co-founder. These charges centered on allegations of concealing investment risks associated with Terraform’s cryptocurrencies.

Furthermore, the SEC has been granted permission to collaborate with South Korean authorities in questioning Daniel Shin. On August 16, 2023, District Judge Jed Rakoff approved the SEC’s motion, filed on July 10.

This collaboration is part of the SEC’s efforts to build a case against Terraform Labs and its co-founder, Do Kwon.

The motion sought authorization to interview Terra’s co-founder, Daniel Shin, and to request documents from Chai Corporation, a Seoul-based payments provider founded by Shin.

The SEC’s July filing outlined their intention to interrogate Shin regarding Kwon’s association with Chai, as well as Chai Corporation’s use of the Terra blockchain and its disclosures concerning its ties to Terraform.

Do Kwon is serving a four-month prison sentence in Montenegro for his attempt to exit the country using a counterfeit Costa Rican passport.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.