Solana-based decentralized futures exchange Cypher Protocol has taken down smart contracts following an estimated $1 million exploit.
On August 7th, Cypher warned its 13,500 followers on X (formerly Twitter) that it had frozen smart contracts due to a security incident.
The team added that it is investigating the cause of the exploit and is in contact with the hackers to negotiate the return of the stolen funds.
Cypher has had an exploit/security incident. The smart contract has been frozen.
The team is currently working with individuals to investigate
To Hackers: We are writing this letter to see if you would like to talk to us about potential next steps.
— Cypher©️ (@cypher_protocol) August 7, 2023
according to data Solana Blockchain Explorer From your Solscan wallet i doubt it Approximately 38,530 Solana (SOL) tokens and $123,184 USD coins (USDC) were stolen in connection with this exploit, yielding a total of $1,035,203 in illicitly obtained funds.
![](https://s3.cointelegraph.com/uploads/2023-08/651cb037-dedf-4e6d-b86c-90970e138c69.png)
Within hours of the exploit, the suspicious wallet forwarded Sending 30,000 USDC to Binance’s Solana USDC address ‘kiing.sol’ in an attempt to cash in stolen funds.
![](https://s3.cointelegraph.com/uploads/2023-08/c22c8881-f561-4441-b3e7-a29c09fb793d.png)
Since the exploit, numerous NFTs have been sent to the wallet asking for the return of the funds.
“But seriously, you used Binance and KuCoin to raise money and try to raise 30,000. People will find you. Do the right thing and give back the rest.” read 1 NFT.
Another NFT-based message To the attacker, he was even more blunt, simply writing, “Give it back, motherfucker.”
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At the time of this article’s publication, the alleged hackers have yet to bridge Solana-based funds to the Ethereum network.
The attack took place during the mtnDAO hacker house event co-hosted by Cypher Protocol and Solana Protocol’s Marginfi. Marginfi wrote in his Telegram that the company is independent of his Cypher and was not affected by the attack.
Cointelegraph reached out to Cypher Protocol for more information, but did not receive an immediate response.
Also read: Deposit Risk: What Do Cryptocurrency Exchanges Really Do With Your Money?