Cypher Protocol Recovers Stolen $600k In Digital Assets Across CEXs
A recent ne2s report revealed Cypher Protocol, a crypto exchange, has been able to freeze and recover digital assets worth over $600,000 stolen through the cooperation of several centralized crypto exchanges (CEXs). According to the report, the announcement about the Cypher Protocol’s latest achievement surfaced on the internet when the firm made a short post on it via its X (Twitter) page on Thursday.
In the latest development, Cypher Protocol, which is a decentralized futures exchange based on Solana, suffered a security breach on August 7th, causing many customers to lose their funds. However, a groundbreaking announcement concerning the attack recently surfaced, claiming that the firm has recovered a substantial amount of the stolen funds.
According to the news, Cypher Protocol, with the collaboration of several security firms and CEXs, was able to freeze about $600,000 in digital assets that are linked with the Cypher attack on several centralized exchanges. The report revealed that the frozen assets amounted to about 50% of the total stolen assets.
Furthermore, the news revealed that the huge achievement marks essential progress in the fight against online fraudulent activities in the cryptocurrency industry, showcasing the capability of blockchain innovations to neutralize criminal activities.
How the Attack On Cypher Protocol Unfolded
In addition, the firm added that the new development was a success because of two crucial factors. One was the strong cooperation of the various centralized exchanges on which the freezing took place. The second was the cooperation of the law enforcement bodies that issued the seizure warrants, proving the action to take place.
The two factors depict the complex procedures security entities follow in order to recover stolen crypto assets and the jurisdictional issues that occur in the decentralized ecosystem. Furthermore, in its post, Cypher Protocol greatly appreciated an online detective and analyst, ZachXBT, for facilitating the freezing of the stolen assets.
In addition, the firm pointed out that ZachXBT demonstrates the potency of expertise and collaboration. It added that individuals with his skill sets would be beneficial in ensuring that fraudsters are held responsible and restoring users’ trust as the DeFi ecosystem continues to explore the challenges of recovering stolen cryptocurrencies.
The security breach, which occurred with significant precision, highlights that even platforms with well-advanced technology are still vulnerable to attacks. For instance, the report noted that the attackers figured out the weak links in the security system of Cypher Protocol’s smart contract and exploited it.
In the process, the perpetrator gained illegal access to customers’ accounts, looting massive funds in digital currency. A statistical report from Solscan revealed the extent of the breach, stating that 38,530 SOL (Solana token) and about $123,185 USDC stablecoin were stolen due to the attack.
Security Experts And Fraudsters Constantly Fights In The Crypto Industry
Shortly after the occurrence, Cypher Protocol was forced to take the decisive action of temporarily shutting down its smart contracts, which massively affected its operations in order to forestall the breach and prevent further exploitation.
In addition, the report revealed that Cypher Protocol had a dialogue with the supposed attacker two days after the exploit, offering him a white hat bounty of 10% which sums up to about $120,000. However, the attacker didn’t honor the schedule, missing the incentives. Consequently, the firm was prompted into action, investigating the exploit, which later got them a 50% recovery.
Generally, the attack on Cypher Protocol pointed out the unending maneuvers between malicious actors and cybersecurity experts in the cryptocurrency industry. Furthermore, the report highlighted that even though the blockchain innovation has a sound security system which is highly spoken of, it is plagued with exploits that often put users’ investments at risk.
Nonetheless, REKT, an on-chain database, reported that even though Cypher Protocol suffered a massive loss due to the security breach, the occurrence still comes third in terms of the amount lost in a hack for the month of August. Zunami DeFi platform and Steadefi protocol came first and second after losing about $2.1 million and $1.1 million due to recent attacks they suffered.
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