Following the attack, the value of ASTRO tokens fell by 56%, while Terra's luna classic (LUNC) tokens decreased by 3.4% within 24 hours.

The Terra blockchain halted operations on July 31, 2024, due to a reentrancy attack that exploited a vulnerability, resulting in the theft of approximately $5 million in various tokens.

The attack primarily affected bridged assets, including USDC and Astroport tokens, with initial estimates of stolen value reaching around $3 million.

Despite a fix being implemented in April, a June update unintentionally reversed the security patch, allowing the attacker to exploit the vulnerability.

The exploit targeted a vulnerability in IBC-hooks, a third-party add-on for Inter-Blockchain Communication (IBC), which supports cross-chain interactions.

Blockchain security firm Cyvers confirmed the incident, highlighting the reentrancy vulnerability exploited during the attack.

The stolen assets included 60 million ASTRO tokens valued at about $1 million, along with 3.5 million USDC, 500,000 USDT, and 2.7 BTC worth roughly $178,000.

As a result of the exploit, Astroport's ASTRO token plunged by 62% in the past 24 hours, trading at approximately $0.01775.

The incident has caused significant concern within the community, prompting immediate action from the Astroport and Terra teams to address the security breach.

In response to the breach, Terra implemented emergency measures, coordinating with validators to apply a patch to prevent further theft.

Validators, holding over 67% of the voting power on Terra, upgraded their nodes to prevent future exploits.

This incident marks another challenge for Terra, which previously underwent a hard fork from the Terra Classic network after a significant financial collapse in 2022.