Solana Developer Admits to Misusing Cypher Funds

As a long-term crypto investor with significant stakes in various decentralized exchanges (DEXs), I can’t help but feel disheartened by the recent revelation of misappropriated funds within Cypher, a DEX on the Solana blockchain. The confession from Hoak, a core developer, that he had gambled away over $300 million meant for compensating hack victims is not only appalling but also infuriating.


As a crypto investor closely following the developments in the decentralized exchange (DEX) space, I’ve come across some troubling news regarding Cypher – a DEX built on the Solana blockchain. A core developer, identified as “Hoak,” has admitted to an unfortunate mishap: misappropriating over $300 million that were supposedly set aside for compensating hack victims. This shocking revelation was made in a public post on social media platform X. The developer confessed to gambling away the funds instead.

As a researcher examining human behavior, I acknowledge that I have made significant errors in judgment and action on multiple occasions. I understand that these mistakes come with consequences and I do not anticipate being absolved of responsibility or escaping the repercussions of my actions.

— hoak (@hoakbuilds) May 14, 2024

As a researcher uncovering information on this matter, I’ve come across allegations made by a fellow key collaborator known as “Cobra.” These accusations reveal an issue of misappropriated funds, which Cobra claims has been ongoing for quite some time.

In August 2023, hackers discovered a weakness in Cypher’s security protocol, leading to a major breach. They capitalized on this vulnerability, successfully draining $1 million worth of cryptocurrencies from the platform. The exploit specifically targeted smart contracts, allowing for the removal of questionable loans and resulting in substantial financial damage to Cypher.

Cobra, the developer, expressed his disappointment in Hoak’s actions, bringing attention to Hoak’s role in the project after the hack. Hoak had stayed on to help the team recover, but this revelation underscored the significant breach of trust and team integrity, causing worries about the project’s security protocols.

In reaction to the financial misconduct, Cobra expressed their plan to take legal steps against Hoak. They aim to hold Hoak responsible for the fraud that occurred. The internal fraud incident serves as a reminder of the complexities in ensuring security within blockchain technology and highlights the importance of strict supervision in cryptocurrency platforms.

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2024-05-15 15:01