Tapioca DAO has encountered a severe breach leading to the loss of approximately $4.5 million in digital assets. Reports indicate that the crypto attack was initiated through social engineering tactics, resulting in a staggering 96.90% depreciation in the platform’s TAP token value. This security incident has placed immense pressure on the DAO’s ecosystem and its users.
Details of the Hack
According to announcements, the crypto attack targeting Tapioca DAO resulted in a loss of $4.5 million. The attacker accessed 30 million TAP tokens, valued at around $1.40 before the breach, by utilizing the DAO’s vesting contract and USDO stablecoin contract. These tokens are now valued at less than $0.04, leading to a significant drop in the token’s price as they were rapidly liquidated.
In total, the attacker absconded with $4.4 million, which included $2.8 million worth of USDC and $1.57 million of Ethereum 
$3,139; these amounts were converted to USDT and transferred to Binance Smart Chain. Consequently, the TAP price plummeted from $1.50 to $0.046 within 24 hours, and trading volume surged by 12,916%.
Recovery Efforts
Following the crypto attack, Tapioca DAO swiftly initiated actions to recover some of its funds. The team transferred 1,000 ETH from the treasury to a secure multisig wallet, valued at $2.7 million. These funds were part of the collateral used in the DAO’s Big Bang Origins project and were critical to preventing further losses.
As a precautionary measure, the Tapioca Foundation also cautioned users:
“Beware of misinformation and fraudulent links, and refrain from interacting with any Tapioca contracts or tokens until further information is provided.”
Prompt intervention was made possible through collaboration with the web3 security firm Fuzzland and the volunteer rapid response team SEAL911. By securing these assets, Tapioca DAO managed to protect a portion of its holdings despite the financial damages incurred.
While recovery efforts are ongoing, the Tapioca DAO team urged users to await official announcements and plans:
“Please wait for the official announcement, report, and TAP Token Plan; these will serve as the ‘source of truth’ regarding this matter. Otherwise, all other information should be regarded as speculation or misinformation. Please refrain from interacting with any Tapioca contracts, especially token contracts, even through AMMs.”
This attack on Tapioca DAO underscores the critical importance of security measures in the cryptocurrency market. Users are encouraged to exercise greater caution in protecting their digital assets, while platforms must reinforce their security protocols. As the situation develops, it is crucial for the public to receive accurate information and for damages to be minimized through official communications.
