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{"actor":"system:backfill","investigation_id":"d40d84a6-b947-4663-89a1-930346a67361","kind":"publish","page_slug":"mirror-protocol","published_at":"2026-05-30T12:59:03.000Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Mirror Protocol","sections":[{"content":"","heading":"Protocol Overview and Mechanics","severity":"low","sources":[{"credibility":2,"name":"Terraform Labs Launches Mirror Protocol — Decrypt","type":"news_article","url":"https://decrypt.co/50232/terra-mirror-protocol-investors-worldwide-us-equities"},{"credibility":2,"name":"Mirror Protocol Guide — Gemini Cryptopedia","type":"research","url":"https://www.gemini.com/cryptopedia/mirror-protocol-mir-token-masset-mirror-finance"},{"credibility":2,"name":"What Is Mirror Protocol (MIR)? — BeInCrypto","type":"news_article","url":"https://beincrypto.com/learn/mirror-protocol/"},{"credibility":2,"name":"Mirror Protocol: Development and Crisis Explained — Gate.io","type":"research","url":"https://www.gate.com/learn/articles/mirror-protocol-development-and-crisis/804"}]},{"content":"","heading":"$90 Million Lock-Contract Exploit (October 2021)","severity":"critical","sources":[{"credibility":1,"name":"Mirror Protocol Suffers $2M Exploit After $90M Stolen in October — The Record (Recorded Future News)","type":"news_article","url":"https://therecord.media/mirror-protocol-suffers-2-million-exploit-after-90-million-stolen-in-october"},{"credibility":2,"name":"A $90 Million DeFi Exploit on Terra Went Unnoticed for Seven Months — The Block","type":"news_article","url":"https://www.theblock.co/post/149342/a-90-million-defi-exploit-on-terra-went-unnoticed-for-seven-months"},{"credibility":2,"name":"How the Mirror Protocol Was Exploited — BlockSec (Medium)","type":"research","url":"https://blocksecteam.medium.com/how-the-mirror-protocol-is-exploited-33b5c1d48322"},{"credibility":3,"name":"Terra-Based Mirror Protocol Suffers $90 Million Unnoticed Exploit — learn2.trade","type":"news_article","url":"https://learn2.trade/the-mirror-protocol-exploit-explained"}]},{"content":"","heading":"Oracle Pricing Exploit and Luna Collapse Impact (May 2022)","severity":"critical","sources":[{"credibility":1,"name":"Terra's Mirror Protocol Allegedly Suffers New Exploit — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2022/05/30/terras-mirror-protocol-allegedly-suffers-new-exploit"},{"credibility":2,"name":"Mirror Protocol Suffers New Exploit and Could Be Drained in Hours — The Block","type":"news_article","url":"https://www.theblock.co/post/149361/mirror-protocol-suffers-new-exploit-and-could-be-drained-in-hours"},{"credibility":2,"name":"Terra-Based Mirror Protocol Averts Crisis but $2M Drained Nonetheless — CryptoPotato","type":"news_article","url":"https://cryptopotato.com/terra-based-mirror-protocol-averts-crisis-but-2m-drained-nonetheless/"},{"credibility":2,"name":"Was Alleged $2 Million Exploit of Mirror Protocol '100% Preventable'? — Decrypt","type":"news_article","url":"https://decrypt.co/101735/was-alleged-2-million-exploit-of-mirror-protocol-100-preventable"},{"credibility":2,"name":"Mirror Protocol Halts Exploit After $2M Lost — CryptoBriefing","type":"news_article","url":"https://cryptobriefing.com/mirror-protocol-halts-exploit-after-2m-lost/"}]},{"content":"","heading":"SEC Enforcement Action Against Terraform Labs","severity":"critical","sources":[{"credibility":1,"name":"SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes — SEC.gov Press Release","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-32"},{"credibility":1,"name":"SEC v. Terraform Labs PTE Ltd and Do Hyeong Kwon — SEC.gov Case Page","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/distributions-harmed-investors/sec-v-terraform-labs-pte-ltd-do-hyeong-kwon-no-23-cv-1346-jsr-sdny"},{"credibility":1,"name":"SEC v. Terraform Labs — December 2023 Summary Judgment Opinion — SDNY","type":"court_filing","url":"https://www.nysd.uscourts.gov/sites/default/files/2023-12/23-cv-1346,%20Opinion%20and%20Order,%20December%2028,%202023.pdf"},{"credibility":1,"name":"Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict — SEC.gov Press Release","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2024-73"},{"credibility":2,"name":"SEC secures victory against Terraform Labs and founder Do Kwon: key takeaways — DLA Piper","type":"research","url":"https://www.dlapiper.com/en-us/insights/publications/2024/01/sec-secures-victory-against-terraform-labs-and-founder-do-kwon-key-takeaways"},{"credibility":2,"name":"Judge Rules That Terraform's Crypto Assets Are Securities — Winstead Securities Defense Blog","type":"research","url":"https://www.winsteadsecuritiesdefense.com/2024/01/judge-rules-that-terraforms-crypto-assets-are-securities/"}]},{"content":"","heading":"Protocol Shutdown and Dormancy","severity":"high","sources":[{"credibility":2,"name":"Mirror Protocol: Development and Crisis Explained — Gate.io","type":"news_article","url":"https://www.gate.com/learn/articles/mirror-protocol-development-and-crisis/804"},{"credibility":2,"name":"What Is Mirror Protocol (MIR)? — BeInCrypto","type":"news_article","url":"https://beincrypto.com/learn/mirror-protocol/"},{"credibility":2,"name":"Mirror Protocol Exploited, Avoids Worst Case — CoinMarketCap Academy","type":"news_article","url":"https://coinmarketcap.com/academy/article/mirror-protocol-exploited-avoids-worst-case"}]},{"content":"","heading":"Transparency and Disclosure Failures","severity":"high","sources":[{"credibility":2,"name":"How the Mirror Protocol Was Exploited — BlockSec (Medium)","type":"research","url":"https://blocksecteam.medium.com/how-the-mirror-protocol-is-exploited-33b5c1d48322"},{"credibility":1,"name":"Mirror Protocol Suffers $2M Exploit After $90M Stolen in October — The Record","type":"news_article","url":"https://therecord.media/mirror-protocol-suffers-2-million-exploit-after-90-million-stolen-in-october"},{"credibility":2,"name":"Was Alleged $2 Million Exploit of Mirror Protocol '100% Preventable'? — Decrypt","type":"news_article","url":"https://decrypt.co/101735/was-alleged-2-million-exploit-of-mirror-protocol-100-preventable"}]}],"sources_used":[{"credibility":1,"name":"SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes — SEC.gov","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-32"},{"credibility":1,"name":"Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict — SEC.gov","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2024-73"},{"credibility":1,"name":"SEC v. Terraform Labs Case Page — SEC.gov","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/distributions-harmed-investors/sec-v-terraform-labs-pte-ltd-do-hyeong-kwon-no-23-cv-1346-jsr-sdny"},{"credibility":1,"name":"SDNY Opinion and Order, 23-cv-1346, December 28 2023","type":"court_filing","url":"https://www.nysd.uscourts.gov/sites/default/files/2023-12/23-cv-1346,%20Opinion%20and%20Order,%20December%2028,%202023.pdf"},{"credibility":1,"name":"Mirror Protocol Suffers $2M Exploit After $90M Stolen in October — The Record (Recorded Future News)","type":"news_article","url":"https://therecord.media/mirror-protocol-suffers-2-million-exploit-after-90-million-stolen-in-october"},{"credibility":1,"name":"Terra's Mirror Protocol Allegedly Suffers New Exploit — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2022/05/30/terras-mirror-protocol-allegedly-suffers-new-exploit"},{"credibility":2,"name":"A $90 Million DeFi Exploit on Terra Went Unnoticed for Seven Months — The Block","type":"news_article","url":"https://www.theblock.co/post/149342/a-90-million-defi-exploit-on-terra-went-unnoticed-for-seven-months"},{"credibility":2,"name":"Mirror Protocol Suffers New Exploit and Could Be Drained in Hours — The Block","type":"news_article","url":"https://www.theblock.co/post/149361/mirror-protocol-suffers-new-exploit-and-could-be-drained-in-hours"},{"credibility":2,"name":"How the Mirror Protocol Was Exploited — BlockSec (Medium)","type":"research","url":"https://blocksecteam.medium.com/how-the-mirror-protocol-is-exploited-33b5c1d48322"},{"credibility":2,"name":"Terra-Based Mirror Protocol Averts Crisis but $2M Drained Nonetheless — CryptoPotato","type":"news_article","url":"https://cryptopotato.com/terra-based-mirror-protocol-averts-crisis-but-2m-drained-nonetheless/"},{"credibility":2,"name":"Was Alleged $2 Million Exploit of Mirror Protocol '100% Preventable'? — Decrypt","type":"news_article","url":"https://decrypt.co/101735/was-alleged-2-million-exploit-of-mirror-protocol-100-preventable"},{"credibility":2,"name":"Mirror Protocol Halts Exploit After $2M Lost — CryptoBriefing","type":"news_article","url":"https://cryptobriefing.com/mirror-protocol-halts-exploit-after-2m-lost/"},{"credibility":2,"name":"SEC secures victory against Terraform Labs and founder Do Kwon: key takeaways — DLA Piper","type":"research","url":"https://www.dlapiper.com/en-us/insights/publications/2024/01/sec-secures-victory-against-terraform-labs-and-founder-do-kwon-key-takeaways"},{"credibility":2,"name":"Judge Rules That Terraform's Crypto Assets Are Securities — Winstead Securities Defense Blog","type":"research","url":"https://www.winsteadsecuritiesdefense.com/2024/01/judge-rules-that-terraforms-crypto-assets-are-securities/"},{"credibility":2,"name":"Mirror Protocol: Development and Crisis Explained — Gate.io","type":"news_article","url":"https://www.gate.com/learn/articles/mirror-protocol-development-and-crisis/804"},{"credibility":2,"name":"What Is Mirror Protocol (MIR)? — BeInCrypto","type":"news_article","url":"https://beincrypto.com/learn/mirror-protocol/"},{"credibility":2,"name":"Mirror Protocol Guide — Gemini Cryptopedia","type":"research","url":"https://www.gemini.com/cryptopedia/mirror-protocol-mir-token-masset-mirror-finance"},{"credibility":2,"name":"Terraform Labs Launches Mirror Protocol — Decrypt","type":"news_article","url":"https://decrypt.co/50232/terra-mirror-protocol-investors-worldwide-us-equities"},{"credibility":2,"name":"Mirror Protocol Exploited, Avoids Worst Case — CoinMarketCap Academy","type":"news_article","url":"https://coinmarketcap.com/academy/article/mirror-protocol-exploited-avoids-worst-case"}],"summary":"Mirror Protocol was a decentralized synthetic-asset protocol built on the Terra blockchain, launched by Terraform Labs in December 2020, that allowed users worldwide to mint and trade mAssets tracking the prices of real-world equities and other assets. The protocol suffered two separate exploits totaling over $92 million — a $90 million lock-contract vulnerability in October 2021 that went undetected for seven months, and a $2 million oracle-pricing exploit in May 2022 coinciding with the catastrophic collapse of the Terra/Luna ecosystem. The U.S. Securities and Exchange Commission subsequently charged Terraform Labs and CEO Do Kwon with securities fraud in February 2023, with MIR governance tokens and other Terra assets named as unregistered securities; Terraform and Kwon agreed to pay $4.47 billion to settle those charges in June 2024. Mirror Protocol has been dormant since August 26, 2022.","timeline":[{"date":"2020-11-11","event":"MIR token farming begins on Uniswap and Terraswap as Mirror Protocol approaches launch.","source":"BeInCrypto — What Is Mirror Protocol (MIR)?","source_url":"https://beincrypto.com/learn/mirror-protocol/"},{"date":"2020-12-01","event":"Mirror Protocol officially launches on Terra and Ethereum mainnets. Terraform Labs burns admin keys. 18.3 million MIR airdropped to LUNA stakers and UNI holders.","source":"Decrypt — Terraform Labs Launches Mirror Protocol","source_url":"https://decrypt.co/50232/terra-mirror-protocol-investors-worldwide-us-equities"},{"date":"2021-10-01","event":"Unknown attacker begins exploiting the Mirror lock-contract duplicate position-ID vulnerability on Terra Classic. Estimated $90 million eventually extracted over seven months before discovery.","source":"The Block — A $90 Million DeFi Exploit on Terra Went Unnoticed for Seven Months","source_url":"https://www.theblock.co/post/149342/a-90-million-defi-exploit-on-terra-went-unnoticed-for-seven-months"},{"date":"2022-05-09","event":"Terra's UST stablecoin begins losing its dollar peg, triggering the broader Terra/Luna ecosystem collapse and wiping an estimated $40 billion in market value.","source":"DLA Piper — SEC secures victory against Terraform Labs","source_url":"https://www.dlapiper.com/en-us/insights/publications/2024/01/sec-secures-victory-against-terraform-labs-and-founder-do-kwon-key-takeaways"},{"date":"2022-05-28","event":"Community member FatManTerra publicly reveals the $90 million October 2021 exploit on Twitter. BlockSec confirms mechanics and criticizes Mirror team for silent patching without user disclosure.","source":"The Record — Mirror Protocol Suffers $2M Exploit After $90M Stolen in October","source_url":"https://therecord.media/mirror-protocol-suffers-2-million-exploit-after-90-million-stolen-in-october"},{"date":"2022-05-29","event":"Governance participant Mirroruser reports the oracle pricing exploit on Mirror's governance forum. Automated bots exploit LUNC/LUNA2 price discrepancy to drain mBTC, mETH, mDOT, and mGLXY pools.","source":"CryptoPotato — Terra-Based Mirror Protocol Averts Crisis but $2M Drained Nonetheless","source_url":"https://cryptopotato.com/terra-based-mirror-protocol-averts-crisis-but-2m-drained-nonetheless/"},{"date":"2022-05-31","event":"Mirror developers disable mBTC, mETH, mGLXY, and mDOT as accepted collateral types after approximately $2 million has been drained from the oracle pricing exploit.","source":"The Block — Mirror Protocol Suffers New Exploit and Could Be Drained in Hours","source_url":"https://www.theblock.co/post/149361/mirror-protocol-suffers-new-exploit-and-could-be-drained-in-hours"},{"date":"2022-08-11","event":"Band Protocol announces cessation of price feed support on the Terra Classic chain, removing Mirror Protocol's oracle infrastructure.","source":"Gate.io — Mirror Protocol: Development and Crisis Explained","source_url":"https://www.gate.com/learn/articles/mirror-protocol-development-and-crisis/804"},{"date":"2022-08-26","event":"Mirror Protocol becomes dormant. No active price feeds, no new minting or redemptions, and no further development activity.","source":"BeInCrypto — What Is Mirror Protocol (MIR)?","source_url":"https://beincrypto.com/learn/mirror-protocol/"},{"date":"2023-02-16","event":"SEC files complaint against Terraform Labs PTE Ltd and Do Hyeong Kwon in SDNY, citing Mirror Protocol mAssets and MIR tokens as unregistered securities among the charged instruments.","source":"SEC.gov Press Release — SEC Charges Terraform and CEO Do Kwon","source_url":"https://www.sec.gov/newsroom/press-releases/2023-32"},{"date":"2023-12-28","event":"Judge Jed Rakoff issues summary judgment ruling that LUNA, UST, wLUNA, and MIR are securities as a matter of law; court does not sustain mAssets as security-based swaps.","source":"SDNY Opinion and Order, 23-cv-1346","source_url":"https://www.nysd.uscourts.gov/sites/default/files/2023-12/23-cv-1346,%20Opinion%20and%20Order,%20December%2028,%202023.pdf"},{"date":"2024-04-05","event":"Jury unanimously finds Terraform Labs and Do Kwon liable for securities fraud after less than two hours of deliberation.","source":"SEC.gov — Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict","source_url":"https://www.sec.gov/newsroom/press-releases/2024-73"},{"date":"2024-06-13","event":"Terraform Labs and Do Kwon agree to pay a combined $4.47 billion in disgorgement, prejudgment interest, and civil penalties to settle SEC fraud charges.","source":"SEC.gov — Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict","source_url":"https://www.sec.gov/newsroom/press-releases/2024-73"}]},"v":1}