Cypher Protocol Contributor Admits Misappropriating Funds for Online Gambling, Losing Nearly $500K

Bittime - A contributor to Cypher Protocol, a cross-margin decentralized exchange built on Solana, has admitted to stealing nearly $500,000 in community funds to finance an online gambling addiction. Check out the complete details here!

Cypher Protocol Contributors will be Responsible

The individual, known online as "Hoak," admitted his wrongdoing publicly on Twitter. "I know there is nothing I can say or do to undo it, and maybe going to prison is the way out," Hoak wrote in his message of regret.

Through his Twitter account, the perpetrator also wrote a letter stating his regret and that he would take responsibility for whatever risks he had to face.

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Details of Embezzlement of Funds

According to Barrett, another core contributor of Cypher Protocol, Hoak embezzled a total of $314,674 in various cryptocurrencies. This amount includes USDT, USDC, and Solana (SOL) tokens, which are all transferred to the Binance account. 

Additionally, the investigation revealed that Hoak had also collected $184,077 in other cryptocurrencies, including ETH, RLB, and ORCA.

Apology Statement

Hoak expressed deep regret for his actions and acknowledged the irreversible damage. "First of all, I would like to apologize profusely to everyone affected," he wrote. "I know my actions are irreversible and I have to face the consequences. This is the result of online gambling addiction and some psychological problems that were not detected in time."

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Conclusion

This incident highlights potential vulnerabilities in DeFi projects, especially related to internal controls and contributor vetting. The Cypher Protocol case serves as a reminder of the importance of strong security measures and responsible management practices in the decentralized finance space.

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How to Buy Crypto from Bittime

You can buy and sell crypto assets in an easy and safe way via  Bittime .  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements  of Bitcoin (BTC) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER:  This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.