In coordination with the @cosmoslabs_io team, we are holding off on publishing our post-mortem and recovery plan. Since the vulnerability involves the shared Cosmos EVM module, Cosmos Labs asked us to give them a bit more time to ensure all affected Cosmos-based networks are patched safely. We're fully aligned with prioritizing the security of the wider ecosystem. Both documents will be published in full very soon.

The TAC team is currently investigating an exploited vulnerability on the Cosmos-based EVM side of TAC, affecting only $TAC supply. We are working, together with the TAC validators on a temporary chain-halt that will happen over the next few minutes. We will keep you posted on the next findings and next steps for chain resume. please only follow official channels for updates.

Over the past 24 hours TAC experienced a sharp price decline. We know many of you are holding losses today. We take that seriously, and you deserve a direct explanation. 1. No exploit. TAC was not hacked in any form. The protocol operates exactly as designed. All on-chain assets are safe. 2. No insider selling. Neither the team nor early backers contributed to the selling pressure. Team and investor tokens remain fully locked and vested. Unlocks have not begun and are technically impossible at this stage. 3. What happened. We completed an internal review of trading activity, both on-chain and using data available to us from centralized venues. There was no minting of tokens and no malicious activity. The decline was a liquidation cascade triggered initially by a large perpetual futures sell order exceeding the relatively thin liquidity on the market. That in turn resulted in a cascade of liquidations on the perp market as well as sell pressure on spot venues. We continue to monitor trading activity closely. 4. What’s next. The team is fully committed to building. We are finalizing a set of measures focused on strengthening market structure, deepening liquidity, and rebuilding confidence with our community, partners, and investors. We will share the concrete details later this month. Price moved. Fundamentals did not. We build for the long term.

We're happy to announce that ~90% of the funds from the May 12th security incident have been recovered. The attacker decided to return the funds that were sitting across Ethereum, TON, TAC, BSC and Zcash, and retained the 10% as a bounty. We are happy to confirm that the unbalance on the cross-chain layer will be completely fixed. A detailed update and full post-mortem will follow in the coming days. Big thanks to @SEAL_911, our security partners, the @ton_blockchain community and to every partner team that stood with us.

We, the TAC team, based on coordinated discussions with our security partners and law enforcement, formally assert that upon successful return of the funds to the TAC team multisig at 0xa05CBfF7b395DeA456539Db279AbC6EE5a8150f9 and EQAkTfPo4zo72Zyr5dk1QrWvCWlgA0gRd3njyg5hqmwdrVcN and t1dXd2EUAe34BYEtNUtNfrBFQTTs8LhoTUH: 1. Legal action will not be taken against the operator of the address(es) eth/bsc:0x46FB375EAc7a44C231b2b7aB762040ee74908CDc, zec:t1h6NcBAciYGdaVb4Ej1AELTx1D9UF9WUDr and ton:EQBPHhXyG_vbsAEnB6YccNhhaVc6I3ixOCc7vriaOzo4AFA8. The entity controlling the above address(es) carried out the incident affecting the TAC cross-chain layer in multiple transactions, resulting in the movement of approximately $2.8M in USDT, BLUM, and tsTON. Any further investigations or legal matters against the entity, in relation to this incident, will end. 2. We view this occurrence as a white-hat rescue, and as a result: eth:0x46FB375EAc7a44C231b2b7aB762040ee74908CDc and zec:t1h6NcBAciYGdaVb4Ej1AELTx1D9UF9WUDr will be rewarded with 10% of the recovered fund as a white-hat bounty from the TAC team, which translates to approximately 13 ETH + 300ZEC. 3. The remaining balance, will be directed to the TAC team multisigs mentioned above.

Following the security incident, we identified an exploit on the TON side of the TAC crosschain layer that was carried out by an external attacker. The incident resulted in a loss of approximately $2.8M across USDT, BLUM, and tsTON. The TAC token, TON and all ERC-20 tokens bridged from Ethereum are NOT affected. The bridge remains paused while forensic analysis and remediation work are ongoing. A post-mortem with additional disclosure will be published in the next 48 hours. We are actively working with law enforcement, SEAL 911, and our security partners to trace and block the stolen funds. Our focus is on making users whole and fully restoring bridge liquidity through a legally structured sale of Foundation’s TAC token treasury reserves. We will continue to share updates through our official channels. Thank you for your patience and trust.

We are currently investigating a security incident affecting the TAC bridge with TON. The bridge has been paused as soon as we received reports from our security partners. The issue appears isolated to native TON Jettons bridged from TON (excluding $TON). $TON and every other Ethereum native asset are not affected. TON cross-chain transactions remain paused while the investigation is ongoing. Protecting our users is our top priority. Should any users be affected as a result of this incident, we are committed to doing everything we can to make them whole. We will be sharing regular updates through our official channels.

TAC is on fire, literally 🔥 On May 7th, TAC Foundation will burn the Q1/26 staking rewards: 29,608,564.20 $TAC 🔥 This is part of the quarterly process where staking rewards from locked early contributors and investors are burned for fairness to the community and to strengthen scarcity dynamics and align token structure with long-term ecosystem growth. To date, 235,126,963.98 $TAC has already been burned, since mainnet launch, among unclaimed incentives and staking rewards. And we'll keep going. We’ll publish burn transaction on May 7th, stay tuned. GTAC!