TAP Price Crashes 96% As Tapioca DAO Loses $4.5M to Crypto Hack

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As a researcher who has witnessed numerous cyberattacks and hacks in the cryptocurrency world, I can’t help but feel a profound sense of dismay upon hearing about the Tapioca DAO hack. The sheer scale of this breach, with an estimated loss of $4.5 million in digital assets, is truly disheartening. It serves as another grim reminder that no project, regardless of its size or popularity, is immune to such threats.

Unfortunately, Tapioca DAO suffered a significant cyber attack that cost around $4.5 million worth of digital assets. The hack is said to have started with a manipulation tactic known as social engineering, leading to a drastic 96.90% drop in the value of their TAP token. This incident has caused tension within the DAO’s community and among its users due to the impact it has had on their platform.

Crypto Hack Costs Tapioca DAO $4.5M, TAP Price Crashes by 96%

Based on current news updates, an incident involving a crypto heist targeted Tapioca DAO, resulting in a loss of around 4.5 million dollars’ worth of cryptocurrencies. The perpetrator took advantage of the DAO’s vesting contract and USDO stablecoin contract to gain control over about 30 million TAP tokens, each valued at roughly $1.40 prior to the attack. However, due to the hack, these tokens are now only worth less than $0.04, and they were swiftly converted, leading to a significant drop in the token’s value.

All told, the perpetrator made off with approximately 4.4 million dollars. Of this sum, they obtained 2.8 million USDC and 1.57 million Ethereum. These were subsequently exchanged into USDT and moved onto the Binance Smart Chain. This hack caused TAP’s price to plummet by more than 96%, from $1.50 to $0.046 within a single day. Furthermore, this incident spurred a staggering 12,916% surge in trading volumes as a result of heightened market activity due to the actions of traders.

Recovery Efforts Save 1,000 ETH

Following the crypto attack, Tapioca DAO promptly initiated steps to retrieve some of their funds. The team managed to transfer 1,000 ETH, equivalent to around $2.7 million, from a safety deposit box to a secure multisignature wallet. These funds, which were part of the DAO’s security for its Big Bang Origins initiative, played a vital role in limiting additional financial losses.

In preventive measures, the Tapioca Foundation also warned,

Stay vigilant against false information, suspicious links, and avoid any interactions with Tapioca contracts or tokens until more details are given.

A swift action was taken thanks to cooperation with cybersecurity firm Fuzzland and SEAL911, an emergency response volunteer group. This collaboration allowed us to protect some of our assets, even though we suffered significant financial losses overall. (Tapioca DAO)

These advancements occur during a period when there’s been an uptick in cyber attacks focusing on prominent initiatives. Lately, even the official X account of EigenLayer was compromised, disseminating fraudulent links as part of a widening pattern of crypto-related hacking incidents. However, despite this security breach, the price of EIGEN has shown resilience, surging by 10%, buoyed by backing from significant exchanges such as Binance.

Furthermore, Radiant Capital turned to the FBI for help in recovering $50 million that was stolen using sophisticated malware aimed at developer’s digital wallets.

In the midst of ongoing recovery attempts, the Tapioca DAO team recommends users to stay patient for the impending official update and strategies. According to the DAO, this is the recommended course of action.

For accurate and verified information about today’s events, please wait for the official announcement covering Post Mortem and the TAP Token Migration Plan. Any other details you may hear are likely speculation or misinformation. Avoid engaging with any Tapioca contracts, particularly token contracts, even through Automated Market Making (AMM) systems.

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2024-10-19 04:08