The protocol Tapioca #DAO has announced that it was hacked, with the attacker stealing $4.7 million. In hopes of recovering most of the funds, the protocol is offering the attacker a reward that is "significantly higher" than usual.
Tapioca Offers the Attacker a Million-Dollar Reward
The Tapioca Foundation has offered the attacker $1 million in exchange for returning the stolen funds. The attack, which involved social engineering, resulted in a loss of $4.7 million from their decentralized finance protocol.
In an on-chain message posted on October 20 directly to the attacker's crypto wallet, Tapioca presented an enticing proposal:
"We would like to offer you an attractive settlement, where you can walk away with the funds, which would be fully legally yours, with no obligations," the message said.
The offer includes $1 million in Tether (#USDT。 ), which is "significantly higher than the typical 10% rewards," in exchange for the return of the remaining $3.7 million.
Details of the Attack
In a post from October 18, Tapioca revealed that it had suffered a social engineering attack, during which the attacker stole 591 #ETH🔥🔥🔥🔥 and USD Coin (#USDC✅ ) worth $2.8 million.
The attack compromised the ownership of the governance contract for their Tapioca DAO Token (TAP) and stablecoin USDO. The attacker managed to claim and sell the TAP tokens and used the opportunity to mint USDO infinitely, draining the liquidity pool for both USDO and USDC.
Internal Investigation
Matt Marino, co-founder of Tapioca, stated in a Discord post on October 19 that another co-founder, known pseudonymously as Rektor, fell victim to a phishing attack. During an interview process, Rektor unknowingly downloaded malicious software, allowing the attackers to gain access to the contracts.
Later, Marino announced that he had managed to "hack the hacker" and recover 1,000 ETH, currently worth over $2.7 million, which is collateral for the USDO stablecoin.
Impact on TAP Token
During the October 18 attack, the hacker withdrew nearly 30 million TAP tokens from the governance contract, swapped them for ETH worth approximately $1.5 million, converted it to USDT, and sent the funds to the BNB Chain, where they remain, according to transactions in the attacker's wallet.
This attack caused the TAP token to lose almost all of its value, dropping from $1.40 to just $0.02, according to data from CoinGecko.
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
