Investigation Underway: Cypher Protocol Halts Smart Contract After Exploit

A Solana-based decentralised futures exchange, Cypher Protocol, has taken action after an exploit that resulted in an estimated loss of around $1 million.

The Cypher team is currently examining the cause of the exploit and is in communication with the hacker to potentially recover the stolen funds.

On August 7, Cypher Protocol informed its X followers (formerly known as Twitter) about a security incident.

Consequently, it chose to freeze its smart contract as a precautionary measure.

A wallet suspected to be linked to the exploit reportedly took 38,530 Solana SOL tokens and $123,184 USD Coin USDC, tallying up to $1,035,203 in unauthorised gains, based on data from Solscan, a Solana blockchain explorer.

Following the incident, the wallet involved moved 30,000 USDC to the Solana USDC address "kiing.sol" on Binance, seemingly aiming to convert the illicit funds.

In response, several NFTs have been sent to the wallet, requesting the return of the pilfered funds. One NFT message urged the hacker to do the right thing, highlighting their use of Binance and KuCoin.

Another NFT was more direct, simply stating "give it back"

As of now, the alleged hacker hasn't transferred any Solana-based funds to the Ethereum network.