Cypher Protocol reveals $600K of stolen funds is now frozen on CEXs

Solana-based decentralized futures exchange Cypher Protocol has managed to frost $600,000 worthy of crypto stolen from an Aug. 7 information exploit.

In an X (Twitter) station connected Aug. 18, Cypher Protocol reported that much than fractional of the funds stolen person been successfully frozen crossed centralized exchanges with the assistance of respective autarkic blockchain investigators.

“The instrumentality of these funds volition beryllium predicated connected the practice of these CEXs and seizure warrants being issued by instrumentality enforcement,” it said.

Cypher was exploited connected Aug. 7 for astir $1 million, resulting successful the protocol halting its astute contracts.

The DeFi speech enables lending and borrowing done superior accounts with aggregate cross-collateralized sub-accounts. However, the vulnerabilities prevented due tracking of isolated sub-accounts and insufficient borderline checks earlier borrowing, explained blockchain information steadfast Halborn.

The attacker exploited these codification vulnerabilities utilizing aggregate accounts to drain an estimated $1 cardinal successful assorted crypto assets, including USDT, USDT, SOL, wETH and a fistful of different altcoins.

On Aug. 10, the squad managed to marque interaction with the hacker aft it offered a 10% achromatic chapeau bounty worthy astir $120,000.

Two days later, the protocol said the hacker had missed the deadline to instrumentality the funds and opened the bounty up to the public. They besides hinted astatine knowing the partial individuality of the exploiter.

The reward bounty is present unfastened to the nationalist pic.twitter.com/fEIiQ8rTKN

On Aug. 16, Cypher announced a redemption program and “socialized losses policy” to administer remaining assets to affected users. A redemption bundle with protocol assets volition beryllium distributed pro rata based connected idiosyncratic share, it stated.

“The worth utilized for redemption successful narration to a borderline relationship volition beryllium based connected a snapshot of the account’s assets astatine the clip Cypher protocol was frozen,” totaling astir 31 cents connected the dollar it added.

Screenshot from Cypher redemption package. Source: Cypherlabs

In its latest statement, Cypher thanked blockchain sleuth ZachXBT, adding “he was invaluable to the Cypher squad and the main contributor successful the archetypal freezing of funds crossed aggregate CEXs, and besides aided successful tracking the attacker.”

Cointelegraph reached retired to ZachXBT for remark but had not heard backmost astatine the clip of writing.

Related: Crypto hacks and exploits snatch implicit $300M successful Q2 2023

According to the REKT database, the Cypher exploit was not the largest truthful acold successful August, coming successful third.

DeFi protocol Zunami suffered a $2.1 cardinal flash indebtedness onslaught connected Aug. 13 and leveraged output aggregation level Steadefi was exploited for $1.1 cardinal connected Aug. 7.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

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