- DeFi platform Cypher Protocol has lost over $1 million to a hacker
- The platform has frozen the smart contract and has reached out to the attacker requesting them to return the funds
- The protocol is yet to release a detailed report on how the attacker gained access to the funds
Solana-based DeFi platform Cypher Protocol has lost over $1 million to a hacker forcing the platform to freeze its smart contract. Cypher has provided an email address to facilitate communication with the attacker with hopes of recovering part, if not all, of the funds. The protocol is yet to release a detailed report on how the attacker gained access to the funds.
Hacker Attempts to Cash Out Through Binance
In a tweet on August 7, the protocol revealed that its security had been compromised, adding that it’s investigating the incident. Data from Solscan indicate that the attacker siphoned around 38,500 Solana (SOL) coins worth $885,500 at the time of writing and an additional $123,184 in USDC.
if you are the attacker you can reach out on email or session chat app
email: [email protected]
session id: 05acb0ff5ecb13d3e9d6e8225342994157df834f5f14ac916f2212b20539fe113d https://t.co/ZnEbJN8Kju
— cypher ©️ (@cypher_protocol) August 7, 2023
A wallet suspected to be controlled by the Cypher Protocol hacker was seen sending 30,000 USDC to the Binance crypto exchange, in what seems like an attempt to withdraw the illicit funds.
In an unusual turn of events, the crypto community is using NFTs to send messages to the attacker urging them to return the funds. In one such message, a crypto user told the attacker to “do the right thing and give back” the remaining funds and take the $30,000 as a bounty.
Curve’s Hacker Returns Some Funds
According to the user, the hacker’s use of Binance will help investigators to nab him. The act of negotiating with DeFi hackers is gaining momentum with positive results.
Curve Finance, for example, has recovered roughly 73% of funds siphoned from the platform last week after offering a $7 million bounty. Tender.fi’s hacker also returned stolen funds for a $97,000 bounty.
With the hacker yet to move the funds through coin-mixing services like Tornado Cash, it’s likely they’ll return part of the funds.
