TAC Revises $2.8M Exploit as White Hat Incident After Hacker Cooperation

TAC Protocol has taken an unusual approach to handling its recent $2.8 million exploit. Instead of pursuing litigation, the team has decided to offer the hacker a 10% bounty for returning most of the stolen funds. This decision is in line with standard practice in Web3, where hackers are often incentivized to cooperate by offering a percentage of the stolen funds.

The exploit occurred on May 12 and targeted the TON side of TAC's cross-chain layer. The team claims that the vulnerability was isolated to native TON Jettons bridged from the TON network, leaving other assets unaffected. Despite this, the TAC token price has taken a hit, dropping over 21% in the last week.

The decision to classify the exploit as a white hat incident may raise questions about the effectiveness of security measures in place at TAC Protocol. The team's total value locked (TVL) sits at approximately $2.74 million, making the $2.8 million exploit roughly equal to its entire TVL.