Tapioca DAO Thwarts $2.7 Million Theft Following Major Exploit

Tapioca DAO successfully prevented the theft of 1,000 ETH, worth approximately $2.7 million, after suffering a major exploit that drained the majority of its funds. The breach, which involved the theft of $4.4 million in cryptocurrencies, is suspected to be linked to North Korean hackers.

The exploit occurred through a social engineering attack that compromised the private keys of the DAO’s token vesting contract. This allowed the attacker to drain the platform’s funds, leading to a significant crash in the TAP token’s price by over 95%.

Tapioca DAO Blocks Theft

Tapioca DAO, alongside web3 security firm Fuzzland and the emergency response team SEAL911, quickly mobilized to mitigate the damage. They successfully transferred 1,000 ETH to a secure location, protecting these assets from the exploit.

Despite the swift response, the majority of the stolen funds, which include $2.8 million in USDC and Ethereum drained from the USDO/USDC liquidity pair, have not yet been recovered. The attacker bridged the stolen funds from Arbitrum to BNB Chain, where they remain. The Tapioca Foundation, in collaboration with several security teams, continues its efforts to recover the remaining assets.

The attack highlights the growing threat of social engineering in the crypto space, with suspicions pointing to North Korean actors using deceptive methods, such as fake job interviews, to gain access to critical information. These types of scams have become increasingly prevalent, with recent investigations suggesting they are a widespread issue in the cryptocurrency sector.

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Tapioca DAO has advised all platform users to revoke approvals to its contracts until the exploit is fully resolved. The team remains in active discussions with various entities to recover the stolen funds and stabilize the platform.

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