Tapioca DAO, a decentralized cash market protocol on LayerZero, suffered a safety breach on Oct. 18, inflicting its native TAP token to lose greater than 90% of its worth.
Blockchain safety agency Cyvers revealed that the protocol’s deployer handle was compromised, leading to unauthorized modifications to the vesting contract’s possession.
The assault
The attacker exploited the vulnerability to withdraw greater than 21 million TAP tokens utilizing an emergency rescue perform. The tokens have been then swapped for 591 ETH, which triggered TAP to crash 93%.
Additional investigation revealed that the attacker used Stargate to bridge a number of the stolen property to BNB Chain. As of press time, the suspicious handle holds roughly $4.7 million value of BSC-USD and USDC on the BNB Chain.
Cyvers estimates the overall losses from the breach to be roughly $16.9 million. Nevertheless, Web3 safety auditor Hacken recommended 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 faux hyperlinks that promise refunds whereas urging customers to revoke their accounts.
The safety agency warned:
“We’ve seen faux accounts impersonating Tapioca_dao posting phishing hyperlinks beneath this thread. Please don’t work together with any suspicious hyperlinks or messages claiming to be from Tapioca. Keep vigilant and defend your property.”
Tapioca DAO, which is constructing a DeFi cash market and stablecoin on Layer Zero’s cross-chain infrastructure, has but to concern a public assertion relating to the breach as of press time.
North Korea connection
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 sequence of current hacks concentrating on initiatives like Nexera, Concentric, Masa, SpaceCatch, Attain, Serenity Defend, and MurAll.
ZachXBT identified that these assaults are half of a bigger operation involving faux job scams, probably linked to state-sponsored menace actors from North Korea. Nevertheless, there isn’t any conclusive proof linking the Tapioca breach to North Korea as of press time.
