Cypher Protocol Has Revealed That $600K Of Stolen Funds Has Now Been Frozen On CEXs

Cypher Protocol

Cypher Protocol, the Solana-based decentralized futures exchange, has managed to freeze around $600,000 worth of crypto that was stolen from a security exploit on the 7th of August. In a post made on X on the 18th of August, the company reported that almost half of the funds stolen have been frozen successfully across most of the centralized exchanges with the help of several investigators from the blockchain field. The company further stated that the return of the funds would be dependent on the cooperation of the CEXs, as well as the seizure warrants that were issued by law enforcement. 

Cypher Protocol Has Managed To Freeze Exploit Amount

Cypher Protocol was exploited on the 7th of August for a sum of $1 million, which resulted in the protocol halting the smart contracts. The exchange has also enabled lending and borrowing through multiple primary accounts with a bunch of cross-collateralized sub-accounts. However, the vulnerabilities which are present do prevent a proper tracking of isolated sub-accounts, as well as insufficient margin checks before borrowing- as explained by Halborn, a blockchain security firm. It is believed that the attacker managed to exploit these code vulnerabilities through multiple accounts in order to drain an estimated $1 million in various crypto assets- such as USDT, SOL, and a bunch of other altcoins. 

On 10th August, the Cypher Protocol managed to contact the hacker, after it offered a white hat bounty of 10%- which had a worth of $120,000. Just a couple of days later, the protocol also mentioned that the hacker had missed the deadline in order to return the funds, and had further opened the bounty to the public at large.