Crypto Mining News Daily

Saturday, May 18, 2024
HomeSecurityCypher's Crypto Trading Protocol Hit by Insider Hack, Developer Admits to Stealing...

Cypher’s Crypto Trading Protocol Hit by Insider Hack, Developer Admits to Stealing Hundreds of Thousands of Dollars

-

In a shocking turn of events, Cypher, a Solana-based crypto trading protocol, has been hit by an insider hack. A pseudonymous developer, known as Hoak, has admitted to stealing hundreds of thousands of dollars worth of cryptocurrencies from Cypher’s hack reimbursement fund.

According to a statement released by Hoak, he took the funds and gambled them away, blaming his actions on a “crippling gambling addiction.” The hack was discovered after a user reported issues in claiming their redemption, leading the team to discover that the funds were missing.

Cypher’s founder, Barrett, accused Hoak of systematically draining valuable cryptos from the protocol’s redemption contract over multiple months, beginning in December. The hack is estimated to have resulted in the loss of around $300,000 (at current market prices) worth of assets, which were sent to Binance, presumably to cash them out.

In a tweet, Hoak admitted to the allegations, stating that he doesn’t expect anyone to “let this go unpunished.” Barrett has sent information about the heist and Hoak’s true identity to law enforcement and is following their lead.

The hack is particularly disturbing given the context. Cypher created the redemption contract to reimburse customers who shouldered a $1 million loss in an exploit in August. The hack is a devastating blow to the protocol and its users, who had placed their trust in the team to protect their assets.

The incident serves as a stark reminder of the importance of security and accountability in the crypto space. As the industry continues to evolve, it is crucial that protocols and developers prioritize the safety and security of their users’ assets.

Source: Coindesk

LATEST POSTS

Most Popular

Learn How to Mine Crypto

Join our mailing list and receive a free copy of Crypto Mining 101, our detailed guide on how crypto mining works, must have tools to get started, and how to be successful.

Note: We’ll never sell, trade, or abuse your information, and it’s simple to opt out! Read our Privacy Policy here.