Core Contributor Admits to Stealing $260K from Solana's Cypher Protocol
Summary:
An anonymous key participant in Solana's Cypher Protocol admitted to stealing and gambling away roughly $260,000 of the project's cryptocurrency, which was initially recovered from a $1 million breach last year. The individual, identified as "hoak," confessed to his actions in a public release, stating it was the result of an unchecked gambling addiction and other psychological stressors. Another anonymous member, "Barrett," had previously accused hoak, stating the funds were accessed from Cypher’s reimbursement contract. Barrett has since reported the illicit actions to law enforcement.
An undisclosed primary participant in the Solana exchange Cypher Protocol has admitted to pilfering and squandering approximately $260,000 of the project's digital currency, money reclaimed from a $1 million breach in the previous year. The said contributor who identifies as "hoak" stated, in a public declaration distributed in a May 14 X post, “The accusations are accurate, I pilfered the funds and squandered them on gambling. I didn’t abscond with it, nor did anyone else.” Anonymous Cypher contributor "Barrett" earlier published a document on X alleging that a wallet belonging to hoak executed 36 transactions for withdrawing varying volumes of Ether (ETH), Bonk (BONK), Wrapped Solana (wSOL), and other digital currencies from Cypher’s reimbursement contract — total amount close to $260,000. “It had never crossed my mind that a primary contributor who lingered even after the breach to assist in reviving the project would be the one who siphoned funds from the reimbursement contract," expressed Barrett on platform X. Barrett added they have alerted the authorities about hoak’s purported activities. In the statement made by hoak, they accepted that "likely nothing I say or do will ameliorate the situation — perhaps other than serving time in jail." Hoak admitted their decisions were the "final outcome of a burgeoning, debilitating gambling dependency" and several "unchecked psychological issues." They noted that string of personal and professional challenges led them to Cypher, but they conceded that they "failed to bring about innovation within the DEX design space." Hoak described their experience, “I toiled tirelessly, I encountered failure, I kept working and I finally broke." Amidst the breakdown, they confessed that they “allowed too many issues to accumulate in my mind for an extended period to the point that they overpowered me.” Hoak's breakdown affected their personal and professional life in unprecedented ways as it led to "estranging myself from friends, family, missing self-set deadlines, showcasing erratic behavior, and more." In August 2023, the Cypher Protocol faced a serious breach that led to the loss of almost $1 million worth of Solana (SOL) and USD Coin (USDC). However, the Protocol managed to withhold $600,000 of the stolen digital currency. It later instituted the reimbursement contract and a recovery strategy to compensate users for their stolen funds.
Published At
5/15/2024 4:16:02 AM
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