The TAC blockchain has remained in a frozen state for more than 10 days following a massive exploit that forced the project to deploy a 1.26 billion token bailout in an effort to stabilize a severe liquidity crisis. A report from CryptoSlate published on September 2 details how the incident has left the network paralyzed and a significant portion of the token supply under the control of the attacker. CryptoSlate
Details surrounding the attack indicate that a single transaction was responsible for emptying 28.6% of the supply from the bonded pool. That drain rapidly destabilized the protocol’s underlying liquidity mechanics and eliminated a critical reserve that had been supporting the ecosystem. The scale of the withdrawal reflects the severity of the security breach and its immediate impact on the network’s operational capacity, as the loss of more than a quarter of the bonded pool created an existential liquidity shortfall. Faced with this collapse, the protocol’s operators suspended network activity and pursued emergency measures. CryptoSlate
In response to the crisis, stakeholders executed a bailout involving 1.26 billion tokens aimed specifically at addressing the liquidity vacuum created by the exploit. While the injection was intended to mitigate the immediate fallout, the network itself has not resumed operations. The continued freeze, now stretching past the ten-day mark, indicates that the bailout alone has been insufficient to resolve the structural damage or the security concerns that followed the breach. The ongoing halt suggests that further technical or governance intervention may be required before validators and users can safely re-engage with the chain. CryptoSlate
Compounding the situation is the unresolved status of the stolen funds. The attacker continues to hold 1.66 billion TAC tokens, a sum that has not been recovered or neutralized and that poses a persistent risk to any potential restart of the chain. The presence of such a large, hostile-controlled supply creates a significant overhang for the protocol, as the sudden movement or liquidation of those assets could further erode liquidity and undermine the very recovery efforts the bailout was meant to support. Until this outstanding balance is addressed, the threat of additional market disruption remains attached to any discussion of reopening the network. CryptoSlate
As the freeze extends beyond its tenth day, the TAC network remains halted under the combined weight of the bonded pool drain, the 1.26 billion token bailout, and the 1.66 billion attacker-held tokens that remain unresolved. The protocol’s indefinite stasis leaves participants without a confirmed timeline for resuming normal operations, while the outstanding attacker balance continues to loom over any potential recovery. With 28.6% of the bonded pool emptied and a substantial portion of the supply still under attacker control, the blockchain faces a prolonged pause and an uncertain path forward. CryptoSlate