The Tapioca Foundation has offered a $1 million bounty to the hacker responsible for stealing $4.7 million from their DeFi protocol. This offer is part of the efforts to recover the lost assets.

Hack Details

On October 18, 2024, a theft occurred involving 591 Ethereum and $2.8 million in USD Coin from Tapioca's protocol. The vulnerability was exploited in the vesting contract of the Tapioca DAO Token (TAP) and USDO stablecoin. The attacker manipulated the contract to mint unlimited USDO tokens, using them to drain liquidity pools.

Tapioca's Response and Measures

The foundation offered the hacker the opportunity to legally keep $1 million in exchange for returning the rest of the funds. This generous reward significantly exceeds the typical 10% bounty offered in similar situations. Following the attack, Tapioca managed to recover 1,000 ETH (worth about $2.7 million) through counter-hacking efforts.

Consequences and Significance

The attack severely impacted TAP's market value, highlighting the increasing threats to crypto platforms. Nearly $120 million was reportedly lost in over 20 hacks in September 2024 alone, underscoring the urgent need for improved security measures.

The attack on Tapioca and subsequent developments highlight the importance of strengthening security in crypto platforms. This incident serves as a reminder of the growing risks in the rapidly evolving world of cryptocurrency.