Another hack has shaken the crypto industry. This time, Tapioca DAO has fallen victim to a massive security breach, leading to the theft of $1.6 million in $TAP tokens and a 93% price drop.

A Shocking Takeover

Cyvers Alert flagged unusual transactions from Tapioca DAO, signaling that something was wrong. The deployer address was compromised, allowing the attacker to take control of the vesting contract. The exploiter transferred 21 million $TAP token worth $1.6 million by activating the emergency rescue protocol. The transfer of funds to a new address and their swap for 591 ETH caused a sharp nosedive in the token price from $1.30 to $0.098, a 93% value loss.

Where Did the Money Go?

Once ETH was received, the exploiter bridged the funds to the BNB chain using Stargate Finance. Interestingly, the attacker's wallet holds approximately $4.7 million in stablecoins like BSC-USD and USDC, suggesting this was not the first exploit by the attacker.

What to Expect

This exploit adds to the ongoing concerns about the security of DeFi protocols and other crypto projects. The community has suffered from multiple exploits in the last four months, including a hack on the Indian crypto exchange Wazirx, where around $230 million was lost. This raises concerns about the safety of crypto assets. Developers need to prioritize the security of their products.

These incidents highlight the critical need for improved security measures in the crypto industry to protect user assets.