Cypher core contributor confesses to embezzling $260K and squandering it on gambling

A member of the Solana exchange’s Cypher Protocol, known only as “hoak,” has come forward to admit that they stole and squandered approximately $260,000 worth of the project’s cryptocurrency. This comes after a $1 million exploit that occurred last year. In a public statement shared on May 14, hoak confessed to the allegations, stating, “I took the funds and gambled them away. I didn’t run away with it, nor did anyone else.” Previously, another anonymous contributor named “Barrett” had posted a document on X, accusing hoak’s wallet of making 36 transactions, withdrawing various cryptocurrencies from Cypher’s redemption contract. Barrett expressed disbelief that a core contributor, who had remained with the project to help rebuild it after the exploit, would be the one to steal funds from the redemption contract. Barrett also claimed to have reported hoak’s actions to law enforcement.
In hoak’s statement, they acknowledged that nothing they say or do can rectify the situation, except perhaps facing the consequences in jail. Hoak attributed their actions to a severe gambling addiction that had escalated over time, compounded by other unchecked psychological factors. They explained that after facing personal and career difficulties, they found solace in their work with Cypher but ultimately failed to bring innovation to the DEX design space. Hoak described how their mental state deteriorated to the point where it began to affect all areas of their life, causing them to distance themselves from loved ones, miss deadlines, and exhibit erratic behavior.
The exploit on Cypher Protocol occurred in August 2023, resulting in the theft of $1 million worth of Solana and USD Coin. However, the protocol managed to freeze $600,000 worth of the stolen crypto. Subsequently, a redemption contract and recovery plan were created to reimburse users for their stolen funds.
In related news, an article explores the issue of cryptocurrency trading addiction, highlighting warning signs and possible treatment options.