Cypher Protocol Developer Confesses to Stealing $300,000 in User Funds and Gambling Away
A pseudonymous developer at Solana-based Cypher Protocol has confessed to stealing approximately $300,000 worth of user funds and gambling them away.
In a public statement shared on May 14, the developer, known as Hoak, said it stole approximately $300,000 worth of user funds from the Solana-based cross-margin decentralized exchange (DEX).
Hoak’s confession followed a previous disclosure by Barrett_io, another pseudonymous core contributor, who raised concerns about the absence of funds.
The post went unnoticed until a member of an unknown Discord group shed light on experiencing issues with fund withdrawals.
According to Barrett, Hoak had stolen funds from the Cypher redemption contract over several months through 36 withdrawals.
The funds were then sent to an intermediary wallet before being transferred to the Binance exchange.
On-chain data compiled by Barrett reveals that an address associated with Hoak sent approximately $317,000 worth of Solana, Tether USDT, and USDC to Binance.
cypher contributor Hoak (wallet: 7sKMs4mdqFzFgmcZhMnaZayCFqfDEimAf94A2KKXjrWW) has stolen funds from the cypher redemption contract. This happened over months via 36 withdraws (txs laid out in document).
Summary of movement:
Deployer wallet (ETR8…) withdraws funds from…
— cobra ©️ (@barrett_io) May 13, 2024
CoinStats data shows that at its peak on December 7, Hoak’s wallet held around $68,365 worth of digital assets before the funds were sent to Binance.
The wallet still held over $56,000 worth of digital assets on April 22, but within the next two days, over 99% of the assets were transferred.
The incident deals another significant blow to Cypher Protocol, which has been striving to make a comeback after a previous hack in August 2023, when over
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