Cypher Protocol managed to retrieve about half of the funds they lost, amounting to around $600,000. The firm faced a major setback on August 7 when an attacker exploited their system, leading to a loss of nearly $1 million.
A week later, on August 17, Cypher Protocol disclosed through its X account that they’ve secured nearly 50% of the lost funds across various CEX platforms. The malefactor exploited vulnerabilities on some DEXs, using a variety of accounts to snatch assets in diverse digital currencies including USDT, SOL, and wETH.
By August 10, Cypher Protocol reached out to the perpetrator, offering a white hat reward of roughly $120,000, or 10% of the stolen funds. However, the attacker didn’t comply, prompting the firm to make the bounty offer public. To address the theft, the company rolled out a restitution plan for the affected users.
Cypher Protocol detailed that compensation for users would be based on their shares or engagement within the protocol.
For context, Cypher Protocol operates as a decentralized futures marketplace on the Solana (SOL) blockchain, furnishing its clientele with lending, borrowing, and multiple cross-collateralized subaccount services.