According to CryptoPotato: Cypher Protocol experienced an attack by an unknown bad actor about two weeks ago, resulting in the theft of over $1 million in crypto through a smart contract exploit. The project's developers and community attempted to contact the attacker through social media and impromptu NFTs but received no response. In response, Cypher Protocol developers have outlined a two-stage recovery plan. The first stage involves a "pro rata redemption package" allowing users to withdraw some of their remaining assets on the platform. However, due to insufficient assets to repay customers who lost funds, the losses will be "socialized" among all members. So far, $600k belonging to Cypher Protocol has been frozen across various CEXs, and these funds, along with the remaining funds on the platform, will be transferred to users in preparation for the second stage, an Initial DEX Offering (IDO). Cypher Protocol will be audited by OtterSec and Mad Shield before the IDO, and if successful, 50 million debt tokens will be minted and airdropped to users. However, there is no guarantee that investors will be interested in funding a platform with previous security issues, leaving prior investors uncertain about recouping their losses.