A developer linked to the Solana-based (CRYPTO:SOL) Cypher Protocol, known as Hoak, has admitted to gambling away nearly $300,000 of user funds.

This revelation came after an insider disclosed the disappearance of funds and traced 36 transactions leading to Binance.

Hoak attributed his actions to a gambling addiction, highlighting concerns about such issues within the cryptocurrency space.

The incident further compounds Cypher Protocol's challenges, following a previous hack in August 2023.

Criticism of the cryptocurrency industry for fostering casino-like behavior resurfaces, with regulatory scrutiny intensifying.