• A core contributor at Solana’s Cypher Protocol admitted to stealing $300K from the project
• The contributor, named Hoak, blamed his actions on a “crippling gambling addiction”
• The incident occurred within mtnDAO, a decentralized organization developing Cypher Protocol on the Solana blockchain
Cypher, a privacy-focused project built on Solana, was rocked this week when one of its core contributors admitted to misappropriating hundreds of thousands of dollars worth of tokens from the protocol’s treasury.
The Accused Developer
The developer in question is Hoak, who served as a frontend engineer at mtnDAO, the core development studio behind Cypher. Hoak had access to Cypher’s treasury through his role at mtnDAO.
The Missing Funds
On May 9th, Hoak confessed in the Cypher Discord channel that he had secretly withdrawn around $300,000 worth of CYPH tokens from the treasury and sold them for personal gain.
Gambling Addiction Cited as Motive
In his Discord message, Hoak said he stole the funds due to a “crippling gambling addiction” that resulted in substantial debts. He expressed deep shame and regret over his actions.
Official Response
In response, mtnDAO said it has accepted Hoak’s resignation and referred the matter to its legal counsel. The team stated it “does not condone any such actions” and will take steps to prevent similar incidents in the future.
Cypher’s founders said they will not seek legal action against Hoak but warned the community to be vigilant about protecting the treasury going forward.
Looking Ahead
The theft of funds by a core team member deals a blow to trust in Cypher. However, the project’s future remains uncertain as stakeholders debate the best path forward. Some believe the protocol can recover if it implements more robust treasury management controls.
