- Cypher reveals a two-step plan to help users after facing a $1 million loss.
- Users to get a “debt token” showing the owed amount and potential future profits.
- Security audits were planned with firms OtterSec and Mad Shield before resuming services.
Cypher, a cryptocurrency exchange, has given insight into how it plans to bounce back after a financial blow of $1 million. The platform, run on Solana, hopes to ensure its users are at the forefront of its recovery efforts.
For its first recovery action, Cypher has decided to propose a proportional redemption of its assets that users can access through a digital interface. However, the company doesn’t have the money to pay back everyone in full. So, in this early stage, the lack of funds will be distributed evenly among all its users.
Next, the platform has plans to launch an Initial DEX Offering (IDO) to raise more funds. Money collected from this IDO will be used for audits and to make their platform better. What’s more interesting is that the users will get a “debt token.”According to the platform, it is not just any token; it represents the money Cypher still owes them. It also gives the users a share in any future profits the company makes in USD Coin (USDC). The primary goal is to give users a way to slowly get back the money they lost because of the financial setback.
The team behind Cypher has been clear about its mission. They are fully dedicated to making sure their users get their money back. Once that is taken care of, Cypher has plans to partner with audit companies, OtterSec and Mad Shield. These experts will go through the new version of Cypher’s system to find and fix any weak spots.
All of Cypher’s smart contracts will be paused for now. They are focusing on making sure everything is safe and sound before they restart.
The reasons remain unclear regarding the $1 million loss on August 8. On the bright side, about $600,000 of the lost cryptocurrency was frozen by other exchanges. Cypher is on the job, working to get that money back for its users. They are considering talking it out with these exchanges or, if necessary, taking legal action.
Crypto Firms Deploy Hack Recovery Methods
Facing the mounting challenges of cyber theft, cryptocurrency companies are evolving their strategies to support users who have suffered losses due to hacks. A leading example of this is seen with Solana’s Cypher platform.
Cryptocurrency firms like Cypher are further bolstering their recovery strategies by seeking the assistance of legal authorities. Engaging in legal dialogues and interventions might pave the way for the potential recovery of purloined assets over time.
However, a word of caution remains for digital currency holders. The online realm is full of fraudulent entities claiming to offer recovery services. Users are urged to tread carefully, remaining alert to unsolicited recovery offers and always prioritizing diligent research before taking any actions.