After suffering a significant attack that resulted in a 95% price drop, Tapioca DAO has shared a partial recovery update with its investors. The development team successfully recovered 1,000 ETH, valued at $2.7 million, which was on the verge of being lost.
Details of the Attack and Initial Responses
The recent altcoin attack led to the theft of approximately $4.5 million worth of cryptocurrency. The price of TAP tokens plummeted by 95%, causing panic among investors. However, the Tapioca DAO team quickly acted to control the situation.
Working alongside web3 security firm Fuzzland and other partners, the developers began efforts to recover the stolen funds and mitigate the attack’s impact. The team also issued urgent warnings, advising users to revoke their contract approvals immediately.
Recovery of Funds and Preventative Measures
Through coordinated efforts with Fuzzland and the emergency response team SEAL911, developers managed to transfer 1,000 ETH from a vault to the DAO’s multi-signature wallet. These funds, which were initially used as collateral for the USDO/USDC liquidity pool, have now been secured.
Meanwhile, the attackers converted the stolen funds from ETH to USDT and bridged them from Arbitrum to the BNB Chain. The team continues to trace these assets, but as of now, the stolen funds have not been recovered.
The Tactics Behind the Attack and Rising Suspicions
According to Fuzzland, the attack was carried out using social engineering tactics. The attackers tricked a Discord member into believing they were a recruiter, allowing them to gain access to private keys. This method is a common approach in the crypto space, targeting unsuspecting users.
Independent blockchain researcher ZachXBT has suggested that North Korean hacking groups may have been involved in this attack. As The Bit Journal previously reported, similar altcoin scams have been linked to these groups in the past. While no concrete evidence has been provided, suspicions remain strong.
Future Plans and Investor Expectations
The Tapioca DAO team continues its efforts to protect the remaining assets and recover the stolen funds. The DAO’s treasury currently holds $4.2 million, and developers are working to use these resources efficiently to secure the project’s future.
Investors are closely watching the team’s actions. Despite the significant loss, the swift and effective response from the team is seen as a promising sign. The steps taken in the coming days will be critical in determining the future of the project and restoring investor confidence.
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