Tapioca DAO loses tokens to hacker. One of the project's co-founders was phished, another co-founder said.
Investors in lending protocol Tapioca DAO's TAP are reeling after a hacker swiped and sold millions of tokens.
Onchain said that since 12pm UK time on Friday, a hacker has withdrawn around 28 million TAP tokens from one of the protocol's smart contracts. data.
The hacker exchanged the stash for $1.6 million worth of Ether before converting the funds to Tether's USDT stablecoin. They sent the stolen funds to the BNB chain through the Stargate bridge.
A hacker selling many TAP tokens at once crashed its price from around $1.43 to just $0.05 – a 96% decline.
Tapioca's TAP plummeted by 96% after the hacker dumped the token.
Hacker Tapioca DAO co-founder 0xRektora was able to steal the tokens by phishing under the alias of co-founder Matt Marino. Said In Protocol Discord — a messaging app.
Marino said the incident began when 0xRektora approached a friend about being hired by another company, a situation that let his guard down.
“Sometime during this process and two hours ago timeline-wise, 0xRektora connected his hardware wallet, which the attacker used to gain ownership of TAP,” Marino said.
The victims are being cheated
Phishing attacks depend on Social engineering and tricking the victim into taking an action that benefits the attacker, such as visiting a fraudulent website or downloading malware.
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“We are currently in contact with SEAL911 and Binance and Sarah. “The foundation's lawyer is contacting the authorities,” Marino said.
Tapioca DAO launched its TAP token in June. The protocol allows users to lend and borrow crypto assets across multiple different interconnected blockchains, leveraging their holdings using a new stablecoin called USDO.
Tapioca is not the first DeFi protocol to suffer a phishing attack in recent weeks.
On Wednesday, DeFi protocol Radiant Finance lost $53 million after hackers planted Malware on multiple team members' computers.
Tim Craig is News' Edinburgh-based DeFi correspondent. Reach out with tips at [email protected].
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