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Solana-Based Cypher Protocol Experiences Exploit, Freezes Smart Contract

The protocol’s contracts are now frozen as contributors attempt to make contact with hackers to negotiate a return of funds.

By Danny Nelson
AccessTimeIconAug 7, 2023 at 9:06 p.m. UTC
Updated Aug 8, 2023 at 2:34 p.m. UTC
Cypher Protocol suffers exploit (Clint Patterson/Unsplash)
Cypher Protocol suffers exploit (Clint Patterson/Unsplash)
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Solana-based decentralized exchange Cypher lost close to $1 million in crypto Monday due to an exploit or security incident.

The protocol’s contracts are now frozen as contributors attempt to make contact with hackers to negotiate a return of funds.

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    • Cypher is one of the fastest-growing protocols on the solana blockchain in part because of its loyalty program, which rewards depositors and traders with points that many users expect is the setup for an airdrop.

    The exploit comes during Cypher’s biannual hacker house mtnDAO which it hosts in Salt Lake City alongside fellow Solana trading protocol marginfi. In its discord channel, marginfi said it was not impacted by the hack.

    UPDATE (Aug. 7, 2023, 21:48 UTC): Updates figure lost.

    Edited by Stephen Alpher.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Danny Nelson
    Danny Nelson

    Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.

    Follow @realDannyNelson on Twitter

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