Tapioca DAO successfully prevents the theft of 1,000 ETH worth $2.7 million following a major exploit that drained a significant portion of its funds.
Tapioca DAO recently faced a significant security breach that threatened to drain over $2.7 million in Ethereum. Thanks to swift action from the organization and its partners, they managed to secure 1,000 ETH, preventing a larger loss following an exploit that had already drained approximately $4.4 million from their funds.
The Tapioca DAO, a decentralized money market protocol, suffered a severe exploit that resulted in a staggering 95% drop in the price of its TAP token. The attacker, suspected to be linked to North Korean hackers, managed to obtain private keys through a social engineering scheme, draining $4.4 million worth of cryptocurrencies.
The breach allowed the attacker to compromise the token’s vesting contract, which provided access to sell 30 million vested TAP tokens. At the time of the exploit, these tokens were valued at around $1.40 each, but their value has since plummeted to less than $0.04.
In response to the exploit, the Tapioca Foundation took immediate action, working closely with web3 security firm Fuzzland and the emergency response team SEAL911. They coordinated efforts to recover any assets that the attacker had overlooked.
The foundation issued a warning to all users, advising them to revoke approvals to their contracts until the situation was resolved. They also set up a war room with key individuals to strategize recovery efforts.
Despite the significant losses, the Tapioca team successfully moved 1,000 ETH, valued at approximately $2.7 million, from a vault to a secure multisig wallet. This ETH was collateral within their Big Bang Origins project, used to mint USDO for the USDO/USDC liquidity pair.
Fuzzland co-founder Chaofan Shou noted that the team’s quick thinking and approval of a Multicall allowed them to secure these assets before the attacker could act on them.
As of now, the Tapioca DAO’s treasury stands at $4.2 million, but the recovery team has yet to retrieve any of the stolen assets. The organization continues to work diligently to regain control over the situation and restore confidence among its users.
The incident highlights the ongoing risks associated with decentralized finance (DeFi) platforms and the importance of robust security measures. As the crypto landscape evolves, so too do the tactics employed by malicious actors, making vigilance and rapid response essential for safeguarding assets.
