Tapioca DAO, a decentralized cash market protocol on LayerZero, has suffered a safety breach that crashed its native TAP token by greater than 90%.
On Oct. 18, blockchain safety agency Cyvers revealed that the protocol’s deployer tackle was compromised, leading to unauthorized modifications to the vesting contract’s possession.
The assault
The attacker exploited this vulnerability to withdraw greater than 21 million TAP tokens utilizing an emergency rescue operate. The tokens had been then swapped for 591 ETH, which precipitated TAP to plummet by 93%.
Additional investigation revealed that the attacker used Stargate to bridge among the stolen belongings to the BNB Chain. On the time of writing, the suspicious tackle holds roughly $4.7 million value of BSC-USD and USDC on the BNB Chain.
In the meantime, Cyvers estimates the full losses from the breach to be roughly $16.9 million. Nonetheless, Web3 safety auditor Hacken prompt the determine might be as excessive as $38 million.
Within the aftermath of the assault, Hacken warned customers of phishing makes an attempt. Malicious actors are reportedly spreading pretend hyperlinks that promise refunds whereas urging customers to revoke their accounts.
The safety agency warned:
“We’ve observed pretend accounts impersonating Tapioca_dao posting phishing hyperlinks below this thread. Please don’t work together with any suspicious hyperlinks or messages claiming to be from Tapioca. Keep vigilant and shield your belongings.”
Tapioca DAO, which is targeted on constructing a DeFi cash market and stablecoin on Layer Zero’s cross-chain infrastructure, has but to subject a public assertion relating to the breach as of press time.
North Korea connection
On Telegram, on-chain investigator ZachXBT speculated that the Tapioca DAO hack might be linked to malware downloaded by a workforce member.
He identified that this exploit could also be associated to a collection of current hacks focusing on tasks like Nexera, Concentric, Masa, SpaceCatch, Attain, Serenity Defend, and MurAll.
ZachXBT identified that these assaults are half of a bigger operation involving pretend job scams, probably related to state-sponsored risk actors from North Korea. Nonetheless, there isn’t a conclusive proof linking the Tapioca breach to North Korea as of press time.
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