As a seasoned researcher with a knack for deciphering the complexities of the digital world, I find myself both intrigued and disheartened by the recent turn of events at the Tapioca Foundation. The $1 million bounty offer, while commendable in its attempt to rectify the situation, seems to be a desperate move in a game of cat and mouse that’s becoming increasingly common in the realm of decentralized finance (DeFi).
The Tapioca Foundation is providing a reward of one million dollars to anyone who successfully carried out a “social engineering hack” that resulted in the theft of 4.7 million dollars from their decentralized finance system.
In a message sent on October 20th, Tapioca proposed a fair and legitimate compensation, ensuring the recipient would keep all the earnings without any conditions or obligations attached to it.
As an analyst, I’d rephrase that statement as follows: I announced a reward of $1 million in Tether (USDT), stating it was substantially more than the usual 10% bounty, for anyone who could return the remaining $3.7 million that had been stolen.
According to a post on October 18th by Tapioca, they experienced a social engineering incident in which an attacker managed to steal approximately 591 Ether (ETH) and $2.8 million dollars’ worth of USD Coin (USDC). In simpler terms, Tapioca was tricked into giving away these digital assets due to the actions of a cunning hacker.
The explanation revealed that the attack resulted in a change of possession concerning the vested contract of the Tapioca DAO Token (TAP) and the UDSO stablecoin.
The intruder managed to seize and market already-earned TAP tokens, and also introduced a tool to indefinitely produce USDO while draining the liquidity reserve that combined USDO and USDC.
In a recent update on our project’s Discord channel on October 19th, my partner Matt Marino shared some unfortunate news: our anonymous co-founder “Rektora” fell victim to a phishing scam.
He added Rektora “downloaded something during an interview process,” and the software replaced a transaction with a malicious one, which is how the attackers gained access to the contracts.
On October 19th, in a subsequent Discord post, Marino asserted that they had managed to “outsmart the hacker” and retrieved approximately 1,000 ETH, equivalent to more than $2.7 million at current rates. This ETH served as collateral for the USDO stablecoin within a liquidity pool.
As a crypto investor, I recently discovered that during the October 18 incident, an unidentified hacker managed to siphon close to 30 million TAP tokens from the vested contract. This cybercriminal then swapped these tokens for approximately $1.5 million in ETH. Subsequently, they converted this ETH into USDT and transferred it to the BNB Chain, where the funds are still parked, as evidenced by transactions traced back to their wallet.
The TAP token has essentially become worthless following the attack. At present, it’s being traded for just 2 cents, a significant drop from its previous value of approximately $1.40 as per CoinGecko before the attack occurred.
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2024-10-21 05:23