Key takeaways:
- As contributors try to get in touch with hackers to discuss a refund of funds, the contracts for the protocol are currently frozen.
- Another tweet from Cypher asking the attacker to chat certainly included a discussion of a potential bug bounty.
A $1 million estimated exploit caused Cypher Protocol, a decentralized futures exchange based in Solana, to suspend its smart contract.
On August 7, Cypher informed on X (formerly known as Twitter) that a security incident had occurred and that, as a result, its smart contract had been suspended. As contributors try to get in touch with hackers to discuss a refund of funds, the contracts for the protocol are currently frozen.
Due in part to its loyalty program, which gives depositors and traders points in exchange for their business and which many users believe is a set-up for an airdrop, Cypher is one of the protocols on the Solana blockchain that is expanding the fastest.
The team noted that it is looking into what caused the exploit and has contacted the hacker to maybe negotiate the recovery of any cash that were taken.
The accused wallet sent 30,000 USDC to Binance’s “kiing.sol” Solana USDC address in the hours after the exploit, possibly in an effort to withdraw the stolen money. Numerous NFTs asking for the return of the funds have been received in the wallet since the exploit.
Another tweet from Cypher asking the attacker to chat certainly included a discussion of a potential bug bounty.
The suspected hacker has not yet transferred Solana-based funds to the Ethereum network.
The attack occurs during the mtnDAO hacker house event that Cypher Protocol and partner Solana Protocol Marginfi are co-hosting. Marginfi claimed in a Telegram message that it is still separate from Cypher and was unaffected by the attack.
DeFi is vulnerable to attacks and hacks due to its rapid growth as a “technical financial economy.” The Curve exploit rattled the DeFi a few days ago, but there was some respite when the attacker consented to bargain with the exchanges for a bounty.
