Terra, the Phoenix-1 blockchain, was hacked due to an exploit in the outdated IBC-go 7.3 version. In contrast, Terra Classic remained secure thanks to a major upgrade by Genuine Labs months ago.
The exploit targeted a vulnerability in IBC hooks, a third-party module for cross-chain interactions. Ethan Buchman, co-founder of Cosmos, expressed disappointment, noting that the hack occurred after Terra accidentally reverted a patch in their June upgrade.
This incident underscores the need for timely updates and minimizing forks to enhance security. The use of an outdated fork made it difficult for Terra to stay current with critical security patches.
