Cypher Protocol Recovers Nearly 50% of Stolen Funds, Worth $600,000, After Exploit Attack
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The Cypher Protocol Recovers Nearly 50% of Stolen Funds After Exploit Attack
The Cypher Protocol, a decentralized futures exchange on the Solana blockchain, has successfully recovered almost 50% of the stolen funds following an exploit attack. The attack took place on August 7 and resulted in the loss of approximately $1 million from the company’s accounts.
Freezing Stolen Funds
Cypher Protocol announced on August 17 that it had frozen nearly half of the stolen funds, which amounted to about $600,000. These funds were frozen in various centralized exchanges (CEXs). However, the return of the money is contingent upon the cooperation of these exchanges and the issuance of warrants by law enforcement.
Hacker’s Strategy
The hacker utilized different accounts to exploit vulnerabilities in decentralized exchanges (DEXs) and stole money in various cryptocurrencies, including USDT, SOL, and wETH.
Offering a Reward and Recovery Plan
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On August 10, Cypher Protocol contacted the attacker and offered a 10% white hat reward, valued at approximately $120,000, in an attempt to retrieve the stolen funds. However, the hacker did not return the money, prompting the company to make the reward public. Additionally, Cypher Protocol announced a recovery plan to distribute the remaining assets to affected users based on their shares or level of shares in the protocol.
About Cypher Protocol
Cypher Protocol is a decentralized futures exchange operating on the Solana blockchain. The company offers lending and borrowing services to its users through secure sub-accounts.
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