A contributor to the Solana-based exchange Cypher, known as Hoak, has confessed to taking and gambling away funds recovered from an exploit. The amount taken totaled around $260,000, according to calculations by The Block. Hoak admitted to withdrawing various cryptocurrencies across 36 transactions from Cypher's redemption contract.

Another contributor, Barrett, discovered the transactions and contacted law enforcement. Hoak acknowledged the allegations, stating that his actions were due to worsening mental health and a gambling addiction. He expressed regret, saying he had let his struggles consume him and impact his relationships and work.

The exploit occurred in August 2023, resulting in the loss of over $1 million worth of SOL and USDC. The Cypher team froze $600,000 worth of stolen funds on centralized exchanges and created a redemption contract for users to retrieve their lost funds. Barrett expressed disappointment and sadness, saying he never thought a core contributor would misuse the recovered funds.

Hoak's admission and apology have sparked a conversation about mental health and accountability in the crypto community. His actions have caused harm and betrayed the trust of his colleagues and users, highlighting the need for greater support and oversight in the space.