A Cypher Protocol developer in Solana, known only as Hoak has admitted to misappropriating nearly $300,000 in user funds.
The fraud remained veiled for months, concealed within blockchain transactions until a Discord user dared to shed light on it.
Through 36 meticulous manoeuvres, funds, once entrusted to the Cypher redemption contract, were funnelled through channels of intermediary wallets before finding refuge in the depths of Binance.
The statement posted on X reads: “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).”
The statement continues: “Deployer wallet (ETR8…) withdraws funds from Cypher’s redemption contract. Then conducts swaps and sends SOL, USDC, and USDT to an intermediary wallet (7sKM…). This intermediary wallet then sends funds to Binance.”
“This is incredibly saddening to me. I never thought this would be a possibility, having a core contributor who stayed on after the exploit to try and rebuild the project be the one who rugged funds from the redemption contract.
“This was not caught until an individual in the discord pinged that he could not withdraw. Hoak then indicated that he would take care of the issue. The individual pinged again stating they still was not able to withdraw after the deadline hoak provided.
“I have reached out to law enforcement with the information in the below document,” the statement concludes.