TAP Price Crashes 96% As Tapioca DAO Loses $4.5M to Crypto Hack

Tapioca DAO experienced a devastating breach that resulted in the loss of approximately $4.5 million in digital assets. The crypto hack reportedly initiated through a social engineering scheme, caused the platform’s TAP token to plummet by 96.90%. This security incident has placed a strain on the DAO’s ecosystem and its users.

Crypto Hack Costs Tapioca DAO $4.5M, TAP Price Crashes by 96%

According to recent reports, a crypto hack targeting Tapioca DAO resulted in the loss of $4.5 million worth of cryptocurrencies. The hacker exploited the DAO’s vesting contract and the USDO stablecoin contract, accessing 30 million TAP tokens, which had a value of approximately $1.40 each before the attack. These tokens, now worth less than $0.04, were quickly liquidated, causing a massive crash in the token’s value.

In total, the attacker walked away with $4.4 million. This included $2.8 million in USDC and $1.57 million in Ethereum, which were swapped into USDT and later bridged to the Binance Smart Chain. As a result of this exploit, TAP Price dropped by over 96%, falling from $1.50 to $0.046 in just 24 hours. This event also triggered a 12,916% increase in trading volumes due to increased market activity as traders reacted.

Recovery Efforts Save 1,000 ETH

In the aftermath of the crypto hack, Tapioca DAO took immediate action to recover some of its funds. The team successfully moved 1,000 ETH, valued at $2.7 million, from a vault to a secure multisig wallet. These funds, part of the DAO’s collateral used within its Big Bang Origins project, were crucial to preventing further losses.

In preventive measures, the Tapioca Foundation also warned,

“Be aware of misinformation, scam links, and do not interact with any Tapioca contracts or tokens until further information is provided.”

The quick intervention was possible through collaboration with web3 security firm Fuzzland and SEAL911, a volunteer emergency response team. By securing these assets, Tapioca DAO was able to safeguard a portion of its holdings despite the overall financial damage.

These developments come amid increased hacks targeting high-profile projects. Recently, EigenLayer’s official X account was hacked, posting phishing links in a growing trend of crypto-related hacks. Despite the breach, EIGEN price remained strong, rising 10%, boosted by support from major exchanges like Binance.

Additionally, Another hack has led Radiant Capital to seek the FBI’s assistance to recover $50 million stolen through advanced malware targeting developers’ wallets. 

As recovery efforts continue, the Tapioca DAO team has advised users to await the official announcement and plans. The DAO stated,

“Please await the official announcement, Post Mortem, and TAP Token Migration Plan regarding today’s unfortunate events for a “source of truth” on all details surrounding the matter. Take anything stated otherwise as speculation or misinformation. Please continue to not interact with any Tapioca contracts, especially token contracts, even via AMM(s).”

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.