Tapioca DAO has suffered a significant breach, resulting in the loss of about $4.5 million in digital assets, leading to a sharp decline in the value of TAP token.

What Happened During the Breach?

Reports reveal that the attackers exploited the DAO’s vesting contract and USDO stablecoin contract, gaining access to 30 million TAP tokens originally valued at $1.40 each. Following the breach, the token’s worth plummeted to less than $0.04 as they were rapidly liquidated.

How is Tapioca DAO Responding to the Attack?

In the aftermath of the attack, Tapioca DAO took immediate action to recover lost funds. The team moved 1,000 ETH from their treasury to a secure multisig wallet to prevent further losses. This amount, valued at $2.7 million, is part of the collateral for the Big Bang Origins project. Users are reminded to remain vigilant against misinformation and suspicious links.

Importance of Strengthening Security Measures

The incident underscores the urgency for improved security measures in the cryptocurrency space. Despite tackling the issues, the financial impact of the attack was severe, affecting both assets and user trust. Tapioca's proactive recovery efforts aim to mitigate losses and protect users' interests.

As recovery efforts continue, the Tapioca team urges users to await official updates and avoid interacting with any Tapioca contracts until further notice.