A key member of the decentralized exchange Cypher, known by the pseudonym Hoak, has confessed to misappropriating a portion of the funds stolen during an exploit in August 2023.
He attributed his actions to a “severe gambling addiction” and a range of other “psychological factors that had long been neglected.”
“The accusations are true: I took the money and lost it. Neither I nor anyone else ran off with it. I know that nothing I say or do will improve the situation — perhaps except rotting in jail,” Hoak wrote.
Previously, another Cypher participant, known as Barrett, released a document detailing the movement of the stolen funds.
According to the analysis, Hoak executed 36 transactions withdrawing approximately $260,000 in Ethereum, Bonk, Wrapped Solana, and other cryptocurrencies from the redemption contract. This contract was established to compensate clients affected by the hack, holding $600,000.
“I never imagined that the main participant, who stayed on after the exploit to rebuild the project, would steal the funds intended for compensation,” Barrett wrote.
He added that he had informed law enforcement about his colleague’s alleged actions.
Back in August 2023, Cypher suffered an exploit resulting in the loss of 38,530 SOL and 123,184 USDC, amounting to over $1 million. The team froze the protocol’s smart contracts and recovered some of the funds.
