Key Takeaways:
- Tapioca DAO suffered a $4.7M hack via a social engineering attack, exploiting vesting contracts for TAP and USDO.
- In response, Tapioca DAO is offering a $1M bounty in USDT to the attacker, larger than typical 10% bounties, to recover the remaining $3.7M.
- Despite the breach, Tapioca recovered 1,000 ETH (~$2.7M), though the hacker still holds $1.5M in ETH after swapping 30M TAP tokens.
Tapioca DAO, a DeFi protocol, recently experienced a $4.7 million hack, primarily through social engineering.
The attack exploited Tapioca’s vesting contract, allowing the hacker to steal 591 Ether (ETH) and $2.8 million in USD Coin (USDC).
Tapioca DAO has suffered a social engineering attack. This enabled the attacker to compromise the TAP token vesting contract’s ownership which allowed the attacker to claim and sell this 30M vested TAP, which impacted the TAP/ETH DAO owned LP. The attacker then also comprised the…
— Tapioca Foundation (@tapioca_dao) October 18, 2024
Tapioca’s co-founder, “Rektora,” was reportedly phished during an interview, enabling the attacker to access critical contracts.
In response, Tapioca has offered a $1 million bounty, paid in Tether (USDT), to the hacker for returning the remaining $3.7 million.
This bounty is significantly larger than the usual 10% in similar cases.
Please await the official announcement, Post Mortem, and TAP Token Migration Plan regarding today’s unfortunate events for a “source of truth” on all details surrounding the matter. Take anything stated otherwise as speculation or misinformation.
— Tapioca Foundation (@tapioca_dao) October 18, 2024
Please continue to not interact…
Despite the hack, Tapioca managed to recover 1,000 ETH ($2.7 million) by hacking the hacker.
However, the hacker still holds 30 million TAP tokens, converted to $1.5 million in ETH and transferred to the BNB Chain.
The hack caused TAP’s value to collapse from $1.40 to $0.02.
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