Layer-1 blockchain Terra has taken the precautionary step of temporarily shutting down its website to safeguard users from ongoing phishing scams plaguing the platform.
In an official announcement shared on Aug. 22 via the platform’s X (formerly Twitter) account, Terra revealed that the terra.money domains have been successfully frozen in an effort to halt further phishing scams.
However, a comprehensive resolution is still in progress and being diligently pursued by Terra’s team.
In light of these circumstances, Terra has advised all users to refrain from interacting with any sites linked to the terra.money domain until an official “all-clear” notice is released through the same account.
Despite working tirelessly to address the issue, Terra acknowledged encountering delays due to third-party responses.
The announcement also contained updates on the multichain wallet known as Station Wallet, which empowers users to access decentralized applications across diverse blockchain networks such as Terra, Juno, and Kujira.
On Aug. 21, Station Wallet shared important safety enhancements, urging users to avoid utilizing Station desktop and mobile apps until their safety can be confirmed.
The release of updated versions will be announced in due course.
The decision to freeze operations follows an incident where hackers compromised the Terra website over the weekend, attempting to exploit users through phishing attacks.
Warnings were initially issued on Aug. 19, advising users to refrain from engaging with any sites associated with the Terra money domain until further updates were available.
A similar cautionary statement was reissued on Aug. 20.
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This setback occurs more than a year after the prior iteration of the Terra digital ecosystem collapsed in May 2022, resulting in a $40 billion loss and industry-wide turmoil following the collapse of Terra’s algorithmic stablecoin UST.
Despite these challenges, a faction of the Terra community led by co-founder Do Kwon chose to persevere and work towards reviving the project.
This determination led to the launch of Terra 2.0, with a commitment to recovering the lost funds.
As of the time of writing, CoinGecko data indicates that Terra’s (LUNA) market capitalization stands at $152.7 million.
However, recent news of the Terra money hack has caused the token to plummet by 22% over the past seven days and by more than 70% over the past year.
Given Terra’s history of issues, some online observers have shown limited sympathy for those affected by these latest challenges.
The sentiment within certain online discussions highlights the skepticism and caution surrounding the Terra ecosystem.
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