The Terra blockchain, still reeling from its catastrophic collapse in 2022, has suffered another major setback. A recent exploit has drained the network of over $6 million, prompting developers to take emergency measures to patch the vulnerability.

According to cybersecurity firm Beosin, the attackers made off with a staggering 60 million ASTRO tokens, 3.5 million USDC, 500,000 USDT, and 2.7 BTC, valued at $180,000. The exploit was made possible by a reentrancy vulnerability in the timeout callback of ibc-hooks, a feature used for cross-chain swaps.

In response to the attack, Terra developers swiftly paused the chain to apply an emergency patch. A majority of validators, 67%, upgraded their nodes, and block production resumed shortly after. However, the damage had already been done, and the ASTRO token plummeted by as much as 75%.

The vulnerability that led to the exploit was first disclosed in April, and it appears that the attackers took advantage of the window of opportunity before the patch was applied. This incident has raised concerns about the security of the Terra network, which has faced numerous challenges since its relaunch as Terra 2.0.

The original Terra blockchain, now known as Terra Classic, collapsed in 2022 after its algorithmic stablecoin, UST, lost its peg, triggering a catastrophic run on deposits. The collapse resulted in over $50 billion in losses, and the network's founder, Do Kwon, is currently awaiting sentencing in Montenegro for his role in the debacle.

In addition to the recent exploit, Terra 2.0 has also faced significant declines in its total value locked (TVL), which has dropped by 80% since April. The network's TVL now stands at a mere $3.9 million, a far cry from its former glory.

As Terraform Labs, the company behind the blockchain, continues to grapple with legal issues and settlements, the future of the network remains uncertain. The recent exploit has dealt a devastating blow to the embattled network, leaving many to wonder if it can recover from this latest setback.