The DAO Hack

The DAO Hack was a cybersecurity breach in 2016 targeting The DAO, a decentralized investment fund built on Ethereum. Hackers exploited a vulnerability in its code, allowing them to repeatedly withdraw funds—around $50 million worth of ether—by taking advantage of a recursive call bug. This caused a crisis in the Ethereum community, leading to a controversial decision to reverse the blockchain to restore the stolen funds. The incident highlighted security challenges in decentralized platforms and influenced future blockchain development and governance considerations.