Bitrabo Editorial
A core developer of the Solana-based Cypher Protocol confessed to taking and losing over $300,000 of users’ money. The news was first disclosed by another developer of the project who then informed law enforcement.
Internal Theft at Solana-Based Protocol
Cobra, a developer at Cypher Protocol, revealed that a key contributor named Hoak had stolen funds from the Cypher Redemption Package Contract. Hoak had been siphoning funds from the contract for months without detection.
The theft came to light when a user reported issues withdrawing funds on the project’s Discord channel. Despite Hoak assuring to address the matter, the user notified the team after the deadline passed, indicating that the problem persisted.
Upon investigation, it was found that over the past six months, Hoak had taken more than $300,000 from the contract through 36 transactions, converting assets such as ETH, BONK, ORCA, WSOL, USDT, and USDC to SOL, USDT, and USDC, and then transferring them to Binance. The stolen assets amounted to around $317,000.
Expressing disappointment, Cobra mentioned his disbelief that a core contributor who had stayed to rebuild the project after a previous exploit could engage in such actions.
Funds Squandered by Developer
In a public statement, Hoak admitted to the accusations and expressed regret. He attributed his actions to a severe gambling addiction that had impacted his professional life and led him to steal from the Redemption Package. Hoak clarified that he gambled away the funds, diminishing hopes of recovery.
The community had varied responses to Hoak’s declaration, with some showing sympathy towards his personal struggles while others criticized his actions and the impact on users. The issue of problem gambling with cryptocurrencies is not novel and has been a concern in the community.
Cryptocurrencies are not directly linked to gambling addictions, but some individuals perceive investing in them as akin to gambling, as highlighted by the UK’s Gambling Commission.
Solana is currently trading at $144.62 in the 3-day chart. Source: SOLUSDT on TradingView