Tapioca DAO Offers $1M Bounty to Recover Stolen Funds in $4.7M Hack
The post Tapioca DAO Offers $1M Bounty to Recover Stolen Funds in $4.7M Hack appeared on BitcoinEthereumNews.com.
The Tapioca Foundation has issued a $1 million bounty to recover the funds stolen from its decentralized finance (DeFi) protocol. The attack occurred on October 18, resulting in a $4.7 million theft, prompting the foundation’s unprecedented offer, which exceeds the regular 10% bounty awarded in similar cases. Tapioca Foundation revealed the breach in an on-chain message on October 20, directly addressing the attacker. The message contained an appealing offer: “We would like to offer you an attractive bounty settlement where you would walk away with funds that are fully legally yours, no strings attached.” The proposed $1 million in Tether (USDT) is considerably higher than the typical 10% bounty, with the expectation that the attacker will return the remaining $3.7 million. The attack involved the theft of 591 ETH and $2.8 million in USD Coin (USDC), according to Tapioca’s October 18 X post. The breach targeted the vesting contract for the Tapioca DAO Token (TAP) and the USDO stablecoin. The hacker gained access to the vested TAP tokens and exploited the contract to mint an infinite amount of USDO, which was then used to drain liquidity pools containing USDO and USDC. Matt Marino, co-founder of Tapioca, provided more insight on the incident in the project’s Discord on October 19. He explained that a fellow co-founder, pseudonymously known as “Rektora,” fell victim to a phishing attack during a job interview. Marino stated that Rektora unknowingly downloaded malicious software, allowing attackers to alter transactions and take control of key contracts. However, the team managed to recover part of the stolen assets. Marino later announced that Tapioca had “hacked the hacker” and retrieved 1,000 ETH, valued at over $2.7 million. This amount had been used as collateral for the USDO stablecoin in a liquidity pool. Tap Token Drops Sharply Following the $4.7M Attack…
Filed under: News - @ October 22, 2024 2:26 pm