Solana-Based DEX Cypher Hacked

The contracts of the Cypher protocol have been frozen while the project team attempts to negotiate with the hacker to recover the stolen funds.

Cypher DEX on Solana Hacked

In the early hours of August 08 (Vietnam time), the decentralized exchange Cypher on Solana was hacked, resulting in the loss of nearly $1 million in cryptocurrency. The protocol's contracts have been frozen, and the project team is actively communicating with the hacker in hopes of retrieving the funds.

Cypher is one of the fastest-growing protocols on Solana, primarily due to its incentives and loyalty programs for users.

Incident Timing and Impact

The attack occurred during Cypher's biannual hacker house event, mtnDAO, in Salt Lake City, which is hosted alongside the marginfi protocol. It has been confirmed that marginfi was not affected by the hack.

Rising Trend of Crypto Attacks

July witnessed a surge in cryptocurrency attacks, with losses totaling up to $303 million, marking the highest for 2023. Notably, Curve Finance was recently targeted. A vulnerability related to the Vyger programming language impacted multiple liquidity pools on the DEX, resulting in an estimated $52 million theft.

This incident adds to the growing list of security breaches in the crypto space, emphasizing the need for robust security measures and prompt responses to protect user funds and maintain trust in decentralized platforms.