Tapioca DAO, a decentralized finance protocol, has been exploited in a significant hacking attack on October 18, 2024. The attacker compromised the TAP token vesting contract’s ownership, allowing them to withdraw and sell 30 million TAP tokens. Initial estimates suggest that over $42 million in TAP tokens and 315 quadrillion USD0 tokens were stolen. The attacker swapped the stolen TAP tokens for $1.5 million worth of ETH. Additionally, the hacker minted a large amount of USDO, which they swapped for USDC. Despite the massive losses, Tapioca DAO managed to rescue 1,000 ETH, worth approximately $2.7 million, before the attacker could steal it. The value of TAP tokens dropped by 96% following the attack, causing significant losses for investors. The total loss includes $4.4 million from a private key compromise, and the attacker withdrew around 21M $TAP. The attack was facilitated through a social engineering attack.