- Cypher Protocol experienced a new exploit.
- The protocol’s response to the attack irked users.
- Efforts to recover the funds are ongoing.
The Solana ecosystem has made headlines again following the August 7, 2023, exploit on its Cypher Protocol, which saw over $1 million in funds stolen. On-chain data from Solana reveals that a crypto wallet suspected to be tied to the hacker made away with around 38,500 SOL tokens and $123,184 USDC, raking a total of $1,035,203 funds. It is believed that the attacker hasn’t moved the funds since they have yet to initiate bridging transactions to the Ethereum Network.
A Frozen Smart Contract and Calls for Dialogue
In response to the exploit, Cypher Protocol froze its smart contract, making it impossible for users to perform transactions on the platform. While it’s seemingly a prudent move, this has attracted backlash from users who were quick to air their criticism on social media.
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Though Cypher has established itself as one of the most advanced protocols in the Solana ecosystem, the new attack exposed how easy it is to target the platform. One Twitter user by the name @PSYTWEAK, while responding to Cypher Protocol’s tweet announcing the incident, remarked, “On the positive side, this exploit was much easier than Ethereum, and the hacker paid hardly any fees.”
Attempts to recover the stolen funds are ongoing, with the Cypher Protocol team inviting the hacker for an open dialogue. While the hacker is yet to respond or make a suspicious move on the stolen funds, the protocol has announced that it will also work with investigators ahead of its upcoming biannual hacker house mtnDAO. At the time of press, it remained unclear when the smart contract would be unfrozen.
Are you on Solana? Learn how hackers could potentially target your wallet:
Hackers Targeting Solana (SOL) Wallets to Steal Crypto
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Learn why Solana is still a growing and thriving ecosystem despite endless hacks:
