Cypher Protocol has managed to reclaim about 50% of assets, valued at an estimated $600,000, which were maliciously taken from its accounts.
The firm experienced a security breach on August 7, resulting in a loss of roughly $1 million. By August 17, through its official X account, Cypher Protocol confirmed that it had successfully secured almost half of the siphoned funds across various Centralized Exchanges (CEX).
update from cypher
— cypher ©️ (@cypher_protocol) August 17, 2023
~$600k has been frozen across CEXs, the return of these funds will be predicated on the cooperation of these CEXs and seizure warrants being issued by law enforcement
The intruder exploited certain vulnerabilities in the Decentralized Exchanges (DEX) and utilized multiple accounts to divert funds in different digital currencies, including USDT, SOL, and wETH.
In an attempt to reclaim their assets, on August 10, Cypher Protocol reached out to the perpetrator, offering a white hat bounty of approximately $120,000, or 10% of the stolen amount. However, the attacker did not return the misappropriated assets, prompting the company to publicize the bounty offer.
The reward bounty is now open to the public pic.twitter.com/fEIiQ8rTKN
— cypher ©️ (@cypher_protocol) August 12, 2023
To address the losses faced by its users, Cypher Protocol unveiled a compensation strategy. According to this plan, affected users will receive a distribution of the recovered assets, proportional to their stake or participation in the protocol.
Cypher Protocol operates as a decentralized futures exchange on the Solana (SOL) blockchain, offering lending and borrowing facilities to its members via multiple cross-collateralized subaccounts.
