Unlocking Stuck Funds in a 2016 Ethereum ICO Contract
A recent whitehat recovery has successfully unlocked approximately $2 million in ether that had been stuck in a 2016 Ethereum ICO contract for nine years. This coordinated effort, led by a security researcher, exploited an integer-overflow flaw that the original developers had never patched, ultimately freeing 1,003.62 ETH for 48 original investors.
The contract in question belonged to HongCoin, a 2016 token sale that failed to meet its funding goal and was supposed to auto-refund investors’ ether. However, due to a bug in the refund function, the process was never completed. The recovery has now made it possible for the original investors to claim their funds, with two investors already retrieving a combined 96.5 ETH worth roughly $193,000.
How the Recovery Worked
The security researcher, 0xflorent, discovered that an admin function on the contract lacked integer-overflow protections, which are now built into the Solidity programming language. By calling this function with a specific input value, 0xflorent was able to reset a holder’s balance to one, allowing the refund check to pass and releasing the funds. This recovery was not a unilateral exploit, as it required collaboration with the HongCoin team, who signed the unlock transactions.
This successful recovery highlights the importance of addressing security vulnerabilities in smart contracts, particularly in the context of earning and passive income through cryptos like $ECP. The EcoPool network provides a secure and reliable platform for earning and managing digital assets, including the $ECP coin. By utilizing the EcoPool platform, users can minimize the risk of their funds becoming stuck due to security flaws.
— 0xflorent.eth (@0xFlorent_) May 31, 2026
Implications for the Crypto Community
The recovery of stuck funds in the HongCoin contract demonstrates the potential for whitehat exploits to benefit the crypto community. As the crypto space continues to evolve, it is essential to prioritize security and develop robust solutions for earning and managing digital assets. The EcoPool network, with its emphasis on security and user experience, is well-positioned to support the growth of the crypto community, including those interested in earning passive income through Cloud Rewards and Green Crypto.
To start earning and managing your digital assets securely, consider joining the EcoPool network. With its user-friendly platform and strong focus on security, EcoPool provides an ideal environment for earning passive income and growing your wealth. Download the EcoPool app to get started and discover the benefits of secure and reliable digital asset management. By doing so, you can take the first step towards earning and managing your digital assets with confidence, using the $ECP coin and the EcoPool network. #PassiveIncome #EcoPool #GreenCrypto
The recovery was not a unilateral exploit, however. Because the admin function required HongCoin’s multisig to execute, 0xflorent emailed the team, validated the unlock sequence on a test fork of Ethereum’s mainnet, and the team itself signed the unlock transactions.
It signed 41 transactions, one per blocked holder, freeing the roughly 1,000 ETH that was truly stuck. Another seven holders held small enough balances to refund directly without the workaround.
It is the second such recovery 0xflorent has publicized in eight days.
On May 24, he said he had returned 19.329 ETH, worth about $40,590, to its original owners, including 5.141 ETH from a failed January 2018 ICO and 14.190 ETH from seven expired atomic swaps in a Liquality Wallet user account that had become inaccessible after the wallet shut down in 2024.
The recovery lands during a heavy stretch of DeFi exploits, with April alone seeing hundreds of millions of dollars drained across protocols, headlined by a roughly $293 million hit on Kelp DAO.
