Mirror Protocol
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.
Connected Entities
1 entities · 10 linked investigations- + 3 more
Timeline(13 events)
2020-11-11
MIR token farming begins on Uniswap and Terraswap as Mirror Protocol approaches launch.
BeInCrypto — What Is Mirror Protocol (MIR)?2020-12-01
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.
Decrypt — Terraform Labs Launches Mirror Protocol2021-10-01
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.
The Block — A $90 Million DeFi Exploit on Terra Went Unnoticed for Seven Months2022-05-09
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.
DLA Piper — SEC secures victory against Terraform Labs2022-05-28
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.
The Record — Mirror Protocol Suffers $2M Exploit After $90M Stolen in October2022-05-29
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.
CryptoPotato — Terra-Based Mirror Protocol Averts Crisis but $2M Drained Nonetheless2022-05-31
Mirror developers disable mBTC, mETH, mGLXY, and mDOT as accepted collateral types after approximately $2 million has been drained from the oracle pricing exploit.
The Block — Mirror Protocol Suffers New Exploit and Could Be Drained in Hours2022-08-11
Band Protocol announces cessation of price feed support on the Terra Classic chain, removing Mirror Protocol's oracle infrastructure.
Gate.io — Mirror Protocol: Development and Crisis Explained2022-08-26
Mirror Protocol becomes dormant. No active price feeds, no new minting or redemptions, and no further development activity.
BeInCrypto — What Is Mirror Protocol (MIR)?2023-02-16
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.
SEC.gov Press Release — SEC Charges Terraform and CEO Do Kwon2023-12-28
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.
SDNY Opinion and Order, 23-cv-13462024-04-05
Jury unanimously finds Terraform Labs and Do Kwon liable for securities fraud after less than two hours of deliberation.
SEC.gov — Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict2024-06-13
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.
SEC.gov — Terraform and Kwon to Pay $4.5 Billion Following Fraud VerdictDecision Log
- hash: EKRV4NkLMqDtYFwfk9oruWJ291kMmaDLLhmR24ixGY1A
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-5
generated: 5/30/2026, 12:58:57 PM
last updated: 5/30/2026, 12:59:03 PM
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