A scandal rocks Cypher decentralized crypto exchange on Solana blockchain
A scandal has rocked the decentralized crypto exchange Cypher on the Solana blockchain. The lead developer, using the pseudonym Hoak, embezzled funds from users totaling around $315,000 and spent them on gambling at a casino. Hoak himself admitted to this in a post on social media platform X (formerly Twitter), explaining his actions as a result of a deep addiction to gambling.
Hoak admits to embezzling $314,674 in stablecoins and Solana cryptocurrency
According to Hoak’s confession, he stole $314,674 which were stored in stablecoins USDT, USDC, and the Solana cryptocurrency. These funds are part of a larger amount of $1 million that was stolen in an exploit in August 2023. In his post, Hoak apologized to all those affected and acknowledged that his actions were a result of a serious addiction and psychological issues.
Law enforcement investigates as details of theft at Cypher exchange emerge
In addition to Hoak’s confession, another Cypher exchange employee, known as Barret, described the details of the theft. According to him, Hoak exchanged the cryptocurrency and withdrew the funds to an intermediary wallet, from where the money then went to the Binance crypto exchange. Barret explained how the process of withdrawing the stolen funds was carried out. In response to these events, law enforcement agencies have already begun an investigation to uncover all the details of the case and hold those responsible accountable.
Importance of enhancing security on cryptocurrency platforms
This case highlights the need to increase control and ensure security on cryptocurrency platforms to prevent similar incidents in the future.
