Cypher Protocol freezes smart contract after an estimated $1M exploit

Cypher Protocol, a Solana-based decentralized futures exchange, has halted its smart contract activity following a quick perpetrator’s estimate $1 million exploit. On Aug. 7, the platform notified its 13,500 followers on X of the incident and consequently froze the relevant smart contract. An examination into the event is on-going.

Data from the Solana blockchain explorer, Solscan, registers the wallet apparently linked to the exploit plundered around 38,530 Solana (SOL) tokens and altogether $123,184 USD Coin (USDC) – summing up to approximately $1,035,203 in total ill-acquired funds. After the attack, the pertinent wallet allegedly transmitted sums of 30,000 USD Coin to Binance’s Solana USDC address – referred to as “kiing.sol” – seemingly as an effort to monetize the plundered funds.

As of yet,the pinched funds have not been moved Between Solana and Ethereum networks and this news brings light on the issue at the same time as Cypher Protocol’s mtnDAO hacker house program, which is co-hosted alongside the added Solana protocol Marginfi. Marginfi soon reported on its Telegram account that it is separated from Cypher Protocol and remains unaffected by the present misdemeanor. Cointelegraph has also reached out to discuss more details of the incident however, has yet to receive a response from Cypher Protocol at the time of this article’s publishing.

Although this is a breaking story more news will be availiable as updates ensue.

Crypto exchanges handle is users’ funds dependably? Indeed, all funds should breach a risk warning.

Robert Wilson author
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