Tapioca Foundation Offers $1M Bounty for DeFi Protocol Attacker
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The Tapioca Foundation has extended a $1 million bounty to the attacker responsible for stealing $4.7 million from its decentralized finance (DeFi) protocol.
The foundation described the incident as a “social engineering attack,” which led to the significant loss.
In an on-chain message sent on October 20, Tapioca addressed the attacker directly, offering a settlement that would allow the attacker to walk away with $1 million in Tether (USDT), no strings attached.
The $1 million bounty is considerably higher than the typical 10% bounty offered in such cases.
In exchange, the foundation requested the return of the remaining $3.7 million.
The attack, which took place on October 18, involved the theft of 591 Ether (ETH) and $2.8 million in USD Coin (USDC).
According to Tapioca, the attacker exploited a vulnerability in the vesting contract for its TAP token and the UDSO stablecoin.
The attacker managed to claim and sell vested TAP tokens and then manipulated the USDO stablecoin by adding a minter to create an infinite supply, draining a liquidity pool of USDO and USDC.
Tapioca co-founder Matt Marino revealed more details in a message on the project’s Discord channel.
He explained that his fellow co-founder, pseudonymously known as “Rektora,” had been phished during an interview process.
Rektora inadvertently downloaded malicious software that altered a transaction, giving the attacker access to critical contracts.
In a surprising twist, Marino later announced that Tapioca had managed to “hack the hacker” and recover 1,000 ETH, worth
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