Tapioca DAO has suffered a major breach, resulting in the loss of around $4.5 million in digital assets. This incident stemmed from social engineering tactics employed by the attackers, leading to a staggering 96.90% decline in the value of the platform’s TAP token. This breach has placed significant strain on the ecosystem and its users.
What Happened During the Breach?
Reports reveal that the attackers exploited the DAO’s vesting contract and USDO stablecoin contract to access 30 million TAP tokens, originally valued at $1.40. Following the breach, the token’s worth plummeted to less than $0.04, causing a drastic devaluation as the tokens were quickly liquidated.
How is Tapioca DAO Responding to the Attack?
In the aftermath of the attack, Tapioca DAO took immediate steps to recover lost funds. The team moved 1,000 ETH from their treasury to a secure multisig wallet to prevent further losses. This amount, valued at $2.7 million, is part of the collateral for the DAO’s Big Bang Origins project.
The incident highlights the urgency for improved security measures within the cryptocurrency space. Key takeaways from the situation include:
- The financial impact of the attack was severe, affecting both assets and user trust.
- The need for users to remain vigilant against misinformation and fraudulent links.
- Proactive recovery efforts can help mitigate losses and protect users’ interests.
As efforts to recover from this attack continue, the Tapioca team has urged users to await official updates regarding the situation. They emphasized the importance of relying on credible communications to avoid speculation and misinformation, advising users to refrain from interacting with any Tapioca contracts in the interim.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
