The developer admitted to gambling away $300,000 from Cypher Protocol.
Key Takeaways
- Hoak, a key contributor to Cypher Protocol, confessed to gambling away more than $300,000 in repurchase agreements.
- Barrett_io reported that Hoak executed 36 unauthorized withdrawals, transferring the stolen funds to Binance through intermediaries.
- Hawk apologized for his actions, citing his severe gambling addiction as the cause.
A Solana-based Cypher Protocol developer known by the pseudonym Hoak admitted: More than $300,000 was embezzled by gambling away Cypher’s repayment contracts.
Hawk publicly confessed this fact on May 14th. via.
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As revealed by Barrett_ioHoak, another Cypher contributor The funds were stolen through 36 withdrawals over a period of several months. I sent this to an intermediary wallet and then sent it to Binance.
Further investigation revealed that the Binance cryptocurrency exchange Approximately $317,000 worth of Tether (USDT), USD Coin (USDC), and Solana (SOL) At the address linked to Hoak.
Hoak resolved his misconduct as follows:
As for the elephant in the room, the claim is true, I took the funds and gambled away them. I didn’t get away with it and no one else did.
Hoak issued a statement apologizing to all parties affected. Acknowledging the seriousness of his gambling addiction, He cited the following reasons for his actions:
I am also in no way, shape or form trying to victimize myself, but this has snowballed into a serious gambling addiction and probably the culmination of several other psychological factors that have gone unchecked for far too long.
This breach of trust still comes at a difficult time for the Cypher Protocol. The August 2023 hack resulted in over $1 million in losses, which have since been recovered.
Bennett_io expressed that the hack adds another layer of surprise and disappointment to the situation. Hoak was one of the key contributors who helped rebuild the project.
This is very sad to me. I never thought it would be possible for a key contributor who remained after the exploit to rebuild the project to be the one robbing the funds from the buyback agreement.
This situation highlights not only the vulnerability of the cryptocurrency sector, but also the broader risks associated with gambling.
In other related news, Sonne Finance was also recently hacked, with $20 million in cryptocurrency stolen.
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