• 29 May, 2024
News

Cypher Dev Confesses to $315K Theft for Gambling: Report

A shocking revelation has come to light in the Solana-based decentralized exchange community as Hoak, a contributor to Cypher Protocol, admitted to stealing $315,000 from the project’s funds. This confession explains the series of unauthorized withdrawals that raised alarms among users.

In a heartfelt public statement, Hoak, grappling with a severe gambling addiction, confessed to diverting these funds to personal accounts to finance his gambling habits. The theft, carried out through multiple transactions since last December, came to light after a community member reported issues with fund withdrawals.

The situation worsens for Cypher Protocol, which had been making strides in recovery following a significant security breach last August, where hackers exploited a vulnerability to steal over $1 million. This recent scandal has cast another shadow over the protocol, currently halted and seeking funds for a security overhaul.

In response to the theft, Barrett, another core contributor of Cypher Protocol, has been actively cooperating with law enforcement and has shared extensive details about the incident on social platforms including the involved wallet addresses and transaction paths.

Meanwhile, in his public statement, Hoak wrote,

I know at this point nothing is going to take back my actions and I have to face the consequences…I took the funds and gambled them away. Barrett is definitely the person who was hurt the most throughout all of this, perhaps other than rotting in jail.

Hoak acknowledged his actions had harmed many, including his closest colleagues at Cypher Protocol and others in the wider web3 community. In his statement, Hoak expressed profound regret and a lack of hope for his future, underscoring the deep personal and professional consequences of his actions. 

As the community and stakeholders of Cypher Protocol digest this unsettling development, the focus turns to bolstering security measures and regaining trust, critical steps needed to move forward and stabilize the platform.

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