Cypher Protocol, a decentralized finance (DeFi) protocol built on the Solana Blockchain, fell victim to a substantial security breach resulting in an estimated loss of $1 million.
Cypher Protocol is a decentralized futures exchange that allows retail and institutional investors to create and trade pre-public markets.
Unauthorized Transfer Of Funds Leads To Contract Freeze
On August 7th, Cypher Protocol reported a security breach to its 13,500 followers on X (formerly known as Twitter). The breach resulted in the unauthorized transfer of approximately 38,530 Solana (SOL) tokens and $123,184 USD Coin (USDC), culminating in a staggering $1,035,203 loss.
Known for its loyalty and rewards program to depositors and users, this incident has caused some serious damage to Cypher Protocol as actions are taken to salvage the situation.
The breach prompted Cypher Protocol to promptly freeze its smart contract, taking proactive measures against further unauthorized access and initiating an investigation to determine the exploit’s root cause.
The team also made contact with the suspected hacker, initiating discussions for a potential return of the misappropriated funds via their official X handle. “To the hacker: We are writing to see whether you would be open to speaking with us about any potential next steps,” Cypher posted on August 7.
