User Loses Funds in Gambling Scandal on Solana (SOL): A Cautionary Tale for Crypto Investors

• Hoak, a developer of the Cypher Protocol within the Solana ecosystem, has admitted to stealing user funds worth approximately $300,000 and gambling them away.
• The Solana-based DEX, Cypher Protocol’s core developer Hoak, confessed his mistake in a public statement shared on a May 14th post.
• “The allegations are true, I took user funds and gambled them away,” Hoak admitted.

Hoak, a developer of the Cypher Protocol within the Solana ecosystem, has confessed to stealing and gambling away user funds worth approximately $300,000, causing shockwaves in the crypto community.

Unbelievable incident from a key figure!

Hoak’s confession came after a post about funds by Cobra on May 13th. The post went unnoticed until an unknown Discord group member shed light on withdrawal issues. According to Cobra:

“Hoak stole money from the password refund agreement. This happened over months with 36 withdrawal transactions… The distributor wallet (ETR8…), withdraws money from Cypher’s refund agreement. It then makes swaps and sends SOL, USDC, and USDT to an intermediary wallet (7sKM…). This intermediary wallet then sends the money to Binance.”

Before the funds were sent to Binance, Hoak’s wallet held a total of $68,365 worth of digital assets on December 7, 2023. According to CoinStats data, over $56,000 worth of digital assets were held in the wallet on April 22nd, and more than 99% of the assets were transferred within the next two days.

Conclusion

This shocking incident serves as a stark reminder of the risks involved in the crypto space, and the importance of thorough research and due diligence before making investment decisions. It also underscores the need for stronger security measures and transparency in the crypto industry.