Solana DEX Contributor Confesses to Embezzling $260K in Cypher Protocol Fallout

A core contributor to the Solana-based decentralised exchange (DEX) Cypher Protocol, known as "hoak," has admitted to embezzling approximately $260,000 in cryptocurrency recovered from a $1 million exploit that occurred in August 2023. Hoak confessed to using the funds for gambling, attributing their actions to a severe gambling addiction and other unchecked psychological factors. The revelation came after another anonymous contributor, "Barrett," exposed a series of transactions from hoak's wallet, withdrawing various cryptocurrencies from Cypher's redemption contract. Despite efforts to rebuild the project post-exploit, hoak's actions have shocked the community, with Barrett notifying law enforcement authorities about the alleged embezzlement. Hoak expressed remorse, acknowledging the gravity of their actions and the toll it took on their personal and professional life. The Cypher Protocol, which froze $600,000 of the stolen funds and implemented a recovery plan for affected users, now faces further challenges in rebuilding trust and integrity within the community.