Tapioca DAO Security Breach: 21 Million TAP Tokens Stolen and Converted to ETH

Tapioca DAO Security Breach: What You Need to Know

In the latest news from the decentralized finance (DeFi) landscape, Tapioca DAO has fallen victim to a significant security breach. This alarming incident has sent shockwaves through the community, highlighting pressing issues related to security in the blockchain sector.

Details of the Breach

According to a report by PANews, monitoring by Cyvers Alerts has revealed that the deployment address for Tapioca DAO may have been compromised. It appears that the ownership of a vital lock-up contract was altered, leading to unauthorized actions.

Unauthorized Token Extraction

The breach involved leveraging an 'emergency rescue' function, which allowed attackers to extract over 21 million TAP tokens. Following the extraction, these tokens were converted into 591 ETH, significantly impacting the token's market value.

Dramatic Impact on TAP Token Value

This security incident has resulted in a staggering 93% drop in the value of TAP tokens, eroding the investments of many holders in a matter of hours.

Funds Transferred to BNB Chain

The suspicious address linked to the breach subsequently transferred the extracted funds through the Stargate cross-chain bridge to the BNB Chain. It is reported that the address currently holds approximately $4.7 million in BSC-USD and USDC.

Community Response and Future Considerations

This shocking incident raises critical questions about security protocols within decentralized networks. The community is left reeling, calling for enhanced security measures to prevent similar occurrences in the future.

Conclusion

The breach at Tapioca DAO serves as a stark reminder of the vulnerabilities present in the DeFi ecosystem. Investors and platform developers alike must prioritize security to protect against these unfortunate incidents.

Keywords

• Tapioca DAO
• security breach
• DeFi
• TAP tokens
• ETH
• BNB Chain
• cross-chain bridge