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Crime and Investigations

Solana Developer Admits to Misusing Recovered Funds Following Exploit

Solana Developer Admits to Misusing Recovered Funds Following Exploit

An individual known as Hoak, a contributor to the Solana-based exchange Cypher, confessed to misusing and gambling away the recovered funds from a previous exploit.

Hoak reportedly withdrew ETH, WSOL, BONK, and other cryptocurrencies in 36 transactions from Cypher’s redemption contract, totaling approximately $260,000 at current prices.

Another Cypher contributor named Barrett discovered these transactions and subsequently alerted law enforcement.

In a statement on Tuesday, Hoak admitted to his actions, acknowledging the truth of the allegations and expressing remorse for his behavior. He attributed his actions to deteriorating mental health, citing a severe gambling addiction and other psychological issues left unchecked over the past year.

READ MORE: Santander Reports Data Breach at Third-Party Provider

The exploit at Cypher occurred in August 2023, resulting in the loss of 38,530 SOL and 123,184 USDC, with total losses exceeding $1 million. The Cypher team froze $600,000 of stolen funds on centralized exchanges and established a redemption contract for users to reclaim their lost assets.

Barrett expressed disappointment over the fate of the recovered funds, particularly as Hoak, a core contributor who remained with the project post-exploit, was responsible for misappropriating them. The issue came to light when a user in the Discord community reported being unable to withdraw funds, prompting Hoak’s reassurances and subsequent failure to resolve the issue within the provided deadline.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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