Cypher Protocol contributor gambles away $260K of project money

Solana exchange Cypher Protocol core contributor has been caught stealing from the project to fuel their gambling addiction

The unnamed person is said to have obtained and gambled aware $260,000 worth of the project $1 million in recovered funds which were obtained after Cypher Protocol suffered due to an exploit.

In an X post, the person known as “hoak,” confirmed that they had indeed stolen the funds and gambled them away. They did say, however, that they had not attempted to run away with the funds but had made an honest mistake.

Hoak’s transgression came to light after another crypto sleuth and Cypher contributor by the name of “Barrett” posted on X to show that there had been 36 transactions in a variety of tokens withdrawn from the project – for a total of around $260,000. The amount that hoak had pilfered.

“I never thought this would be a possibility, having a core contributor who stayed on after the exploit to try and rebuild the project be the one who rugged funds from the redemption contract,” Barrett said on his X handle, criticizing hoak for their actions and what the follow-up response had been both from him and other contributors.

Hoak blamed his “crippling gambling addiction” and “psychological factors” for his actions and said that he had been looking for help.

“I completely lost it late last year and earlier this year to the point where simply trying to hold it together was impacting everything else in my life, distancing myself from long-time friends, family, not being able to meet the deadlines I set for myself, having erratic behaviors, you name it,” hoak said.

Gambling addiction is a serious problem that impacts people and can sometimes push them to commit crimes. While these crimes are understandable, they are not excusable in a court of law, which could be what happens next if law authorities find out hoak’s true identity.

This is the second big scandal involving Cypher Protocol after the project suffered because of an exploit that syphoned away $1 million from it, with contributors eventually trying and succeeding to freeze $600,000 worth of the funds and recover them so that they may repay investors who had lost money.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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