Cypher Protocol Freezes Over $600,000 Of Stolen Funds

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Last Updated on August 21, 2023 by Bitfinsider

Cypher Protocol, a Solana-based decentralised exchange (DEX), has revealed that more than half of the monies stolen from its platform have been frozen across multiple centralised exchanges (CEXs). This is the latest phase in the protocol’s $1 million exploitation.

On August 7, 2023, Cypher Protocol disclosed a security compromise that resulted in the unauthorised withdrawal of 38,530 Solana and $123,184 USDC tokens. The protocol was forced to halt its smart contract in order to avoid future unauthorised access.

Through a post on X (previously Twitter), Cypher Protocol disclosed that $600,000 of the stolen assets have been frozen across numerous centralised exchanges. The DeFi platform stated that the recovery endeavour was substantially successful thanks to the assistance of numerous blockchain investigators.

Cypher specifically devoted a “Thank You” note to popular on-chain sleuth ZachXBT, saying they were instrumental in the freezing of cash across multiple CEXs. The protocol’s development team also indicated that ZachXBT proved useful in tracking down the attacker and the loot.

According to the Cypher Protocol, the full recovery of these monies is contingent on the cooperation of the centralised exchanges and the issue of seizure warrants by the appropriate law enforcement agencies.

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