Hacker once claimed that he had the encryptor chip and would allow the Cybersquad to have it if they could catch enough gleamers to power up the Grim Wreaker 2, where the chip was contained. The Cybersquad managed to win Hacker's challenge (even though Hacker cheated in multiple ways), but the chip turned out to be a cheap fake.
Dr. Marbles finally managed to find the real one chip, but Hacker captured him and reprogrammed the chip to rewrite Motherboard with his own digital image. He then placed the chip up for auction and tricked the Cybersquad into buying it and placing it into Motherboard for Hacker. Motherboard's file was then compressed inside the Encryptor chip, and Hacker planned to despose of it into a blackhole, thus destroying his enemy. However, Hacker's former partner Wicked had managed to spend all of Hacker's money, so he was unable to pay the fee required for disposal into a black hole. By this time, the Cybersquad caught up with Hacker, and he was forced to toss the chip while flying over a volcano. In an act of bravery, Digit plunged after the chip, and caught it just before it was destroyed, thus saving Motherboard. However, in "The Snelfu Snafu: Part 2", the chip was destroyed after Dr. Marbles rebooted Motherboard from her zipped file in it, although he, Slider, and the Cybersquad decided it was worth it. Thus the chase for the encryptor chip ended, and there is still the question of how Dr. Marbles proposes to cure Motherboard.