A core contributor to the Solana exchange known as Cypher Protocol has recently confessed to engaging in theft and gambling activities with approximately $260,000 worth of the project’s cryptocurrency. The funds were recovered from a previous exploit that occurred last year, where $1 million was stolen. The anonymous contributor, who goes by the name “hoak,” made this confession in a public statement shared on May 14.
In a document posted on X by another anonymous Cypher contributor named “Barrett,” it was revealed that hoak’s wallet made 36 transactions, withdrawing various amounts of Ether (ETH), Bonk (BONK), Wrapped Solana (wSOL), and other cryptocurrencies from Cypher’s redemption contract. The total value of these transactions amounted to approximately $260,000. Barrett expressed their shock at the situation, stating that they never expected a core contributor, who remained with the project after the exploit, to be the one responsible for stealing funds from the redemption contract. Barrett also claimed to have informed law enforcement about hoak’s alleged actions.
In hoak’s statement, they admitted to their wrongdoing and expressed remorse. They acknowledged that nothing they say or do can rectify the situation unless they face the consequences, such as imprisonment. Hoak attributed their actions to a severe gambling addiction that had developed over time, combined with unchecked psychological issues. They revealed that personal and career problems had led them to find solace within the Cypher project, but they admitted to failing in terms of innovation in the DEX design space.
Hoak described their relentless efforts to succeed, but ultimately they experienced failure and reached a breaking point. They admitted to letting their mental and emotional burdens accumulate, causing them to lose control. This resulted in them neglecting relationships with friends and family, struggling to meet self-imposed deadlines, and exhibiting erratic behavior.
The exploit of Cypher Protocol occurred in August 2023, where approximately $1 million worth of Solana (SOL) and USD Coin (USDC) were stolen. The protocol managed to freeze $600,000 worth of the stolen crypto and subsequently devised a redemption contract and recovery plan to reimburse users for their losses.
In the related article, “Cryptocurrency trading addiction — What to look out for and how it is treated,” the topic of cryptocurrency addiction is discussed, including warning signs and treatment options.