Cypher Developer 'Hoak' Exposed for Misusing $300k in Hack Compensation
A shocking incident has unfolded within the cryptocurrency platform Cypher. A core developer, known only by the pseudonym 'Hoak,' has been exposed for misusing over $300,000 intended for compensating victims of a recent hack. The incident has raised serious concerns about the security measures and oversight within cryptocurrency platforms.
In August 2023, Cypher fell victim to a hack that exploited vulnerabilities in its protocol, resulting in the loss of $1 million in cryptocurrencies. The attack targeted weaknesses in Cypher's smart contracts, allowing the removal of bad loans and causing significant financial damage. The platform had set aside funds to compensate the victims, but a trusted core developer, Hoak, misappropriated over $300,000 of these funds.
Hoak, whose real identity remains undisclosed, confessed to gambling away the stolen funds on the social platform X. He attributed his actions to a severe gambling addiction and does not anticipate leniency. Another core contributor, 'Cobra,' who had been accusing Hoak for several months, exposed the misappropriation. Cobra expressed disappointment and highlighted Hoak's betrayal, as Hoak had remained with the project to aid in its recovery post-hack. Cobra has announced intentions to pursue legal action against Hoak for the financial misconduct.
The misuse of funds intended for compensating hack victims has cast a shadow over Cypher and raised concerns about the security and oversight within cryptocurrency platforms. The real name of the developer involved, Hoak, remains unknown. Cobra, another core contributor, has vowed to pursue legal action, seeking justice for the victims and the platform.
