DEX Cypher lost $1 million in a hack

[Carding]

An unknown person hacked the Cypher decentralized exchange based on Solana and withdrew about $1 million in cryptocurrencies.

The team froze the protocol's smart contracts and launched an investigation. The developers also invited the hacker to get in touch to discuss the possibility of a refund.

The value of the funds blocked in the protocol has increased significantly since the end of June, but as a result of the incident, it collapsed to $509,470, according to DeFiLlama.

Experts consider Cypher one of the fastest growing protocols in the Solana ecosystem. This is partly due to the loyalty program, which rewards users with points. Some speculate that this is in preparation for the airdrop.

 

[Father]

A member of the hacked DEX Cypher admitted to stealing part of the funds

The main team member of the decentralized exchange Cypher under the nickname Hoak said that he appropriated part of the funds stolen as a result of the exploit in August 2023.

My statement on the situation.

TLDR: I fucked up way too hard, way too many times. I don’t expect anyone to forgive me or let this go unpunished.https://t.co/CNq8UFKCkc
— hoak (@hoakbuilds) May 14, 2024

https://twitter.com/x/status/1790434490877129007

He attributed his actions to a "severe gambling addiction" and a number of other " psychological factors that have been ignored for too long."

"The charges are true: I took the money and lost it. Neither I nor anyone else escaped with them. I know that nothing I say or do will improve the situation — perhaps apart from rotting in prison, " Hoak wrote.

Earlier, another Cypher member under the nickname Barrett published a document with a detailed analysis of the movement of stolen funds.

According to the analysis, Hoak made 36 transactions to withdraw about $260,000 in Ethereum, Bonk, Wrapped Solana and other cryptocurrencies from the redemption contract. The latter was created to reimburse the exchange's clients affected by the hack, and it contained $600,000.

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

https://twitter.com/x/status/1790079978123534664

"I could never have imagined that the main participant who remained after the exploit to rebuild the project would steal the funds intended for reimbursement," Barrett wrote.

He added that he had notified the law enforcement agencies about the alleged actions of his colleague.

Recall that in August 2023, Cypher was exposed to an exploit, as a result of which it lost 38,530 SOLS and 123,184 USDC worth more than $1 million. The team froze the protocol's smart contracts and returned some of the funds.