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Cypher Protocol, a decentralized futures exchange built on Solana, has suspended its smart contract following an estimated $1 million exploit.
On August 7, Cypher informed its 13,500 followers on X (previously known as Twitter) about a security breach, leading to the freezing of its smart contract.
The team stated that it is currently investigating the circumstances surrounding the exploit and has contacted the hacker to discuss the possibility of recovering the stolen assets.
Cypher has experienced an exploit/security incident. The smart contract has been frozen.
The team is actively collaborating with individuals and conducting an investigation.
To the hacker: We are reaching out to see if you would be willing to discuss any potential next steps.— cypher ©️ (@cypher_protocol) August 7, 2023
Data from the Solana blockchain explorer Solscan indicates that the wallet believed to be associated with the exploit acquired around 38,530 Solana (SOL) tokens along with $123,184 in USD Coin (USDC), totaling approximately $1,035,203 in unlawfully obtained funds.
Total balance of stolen funds in the Cypher attackers’ wallet. Source: Solscan
In the hours after the exploit, the suspected wallet transferred 30,000 USDC to Binance’s Solana USDC address “kiing.sol,” likely in an attempt to cash out the stolen assets.
The alleged hacker transferred 30,000 USDC to Binance. Source: Solscan
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Following the exploit, several NFTs have been sent to the wallet urging the return of the funds.
"Seriously though, you used Binance and KuCoin to fund and to try and get 30k out. People will find you. Please do the right thing and give the rest back," stated one NFT.
Another NFT message directed at the attacker was more blunt, simply stating "give it back you shitlord."
Related: ‘All funds are at risk’ — Steadefi exploited in ongoing attack
As of the time of publication, the suspected hacker has not yet bridged any Solana-based assets to the Ethereum network.
This incident occurs during Cypher Protocol’s mtnDAO hacker house event, which it co-hosts with another Solana protocol, Marginfi. Marginfi announced in its Telegram that it remains separate from Cypher and has not been affected by the incident.
Cointelegraph has reached out to Cypher Protocol for further information but has not received an immediate reply.
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