Tapioca DAO Hack Crashes TAP Token by 96%
Tapioca DAO, a lending protocol, experienced a significant hack on Friday that resulted in 28M TAP tokens being stolen and converted into $1.6M in ETH.
What's the Scoop?
- Price Crash: The hacker's sale caused TAP's price to crash from $1.43 to $0.05, a 96% decline.
- Phishing Attack: The hacker phished co-founder 0xRektora by manipulating personal circumstances to steal access to TAP tokens.
- Response: Tapioca DAO co-founders are working with SEAL911, Binance, and legal counsel to address the situation.
Bankless Take:
It’s been a hellish week for hacks, with Tapioca’s exploit coming off the back of Radiant’s highly engineered attack and numerous social account takeovers. With the market surging, hacks have become more lucrative, meaning we can expect many more going forward. It also serves as an important reminder that, despite continuous security advancements, the human factor remains a vulnerable point. The hacker's ability to manipulate co-founder 0xRektora underscores the importance of intense vigilance, showing that users, no matter their level of experience in crypto, must treat security as a number one priority.
Tapioca DAO has suffered a social engineering attack. This enabled the attacker to compromise the TAP token vesting contract’s ownership which allowed the attacker to claim and sell this 30M vested TAP, which impacted the TAP/ETH DAO owned LP. The attacker then also comprised the…
— Tapioca Foundation (@tapioca_dao) October 18, 2024