Hare Finance Private Key Compromise

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Hare Finance Logo/Website

Hare Finance was launching an automatic dollar cost averaging portfolio, which allowed investors to provide funds that would beautomatically invested with high returns promised. The project used a wide variety of promotions across social media. Within a few days of launching, funds disappeared from the wallet. Refunds were reportedly processed through Discord before media related to the project disappeared.

This is a global/international case not involving a specific country.

About Hare Finance

"Automated DCA Investment Protocol with Incentivized Rewards. Dollar-cost averaging is the way to maintain a stable investment and it is the backbone of the Hare Protocol. Utilizing the lightning fast Avalanche Network, you can earn stablecoin yields as your $Hare balance grows in the Hare Vault. Join us and become part of Hare Finance, the first of its kind - a dca protocol. Claim your stablecoin USDC rewards every hour!"

"Automated DCA Protocol (ADP) is a unique mechanism that provides higher stabilization for yield farming, staking, and NFTs. ADP enables users to leverage the dollar-cost average buys over a certain period of time."

"What makes the ADP a unique Protocol? It is the only protocol to employ automated buys with dollar-cost average of a platform token, and automatically staking it for the user. This method provides for unlimited and continuous passive stable income."

"Tomorrow is the big day, and we couldn’t be more proud of the team, our partners family, and our mods who helped us through this process. There has been a tremendous amount of hard work put into this protocol — especially by our developer Code Jacks. He has gone above and beyond to craft the unique DeFi experience that is Hare Finance."

On June 25, 2022 Hare Finance lost $15K due to private key compromise.

"Aegis Audits" "We are proud to announce we have begun onboarding @HareFinance for a full audit of their smart contracts. See you on the other side!"

"Guys, unfortunately the treasury wallet was hacked. We are doing refunds in the Discord server."

"We have a Hare-relief channel set up there and you can post your txn's. We will get to them asap."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Hare Finance Private Key Compromise

Date	Event	Description
May 28th, 2022 6:26:38 PM MDT	Whitelist Video	Video promoting 10 whitelist spots vailable.
June 22nd, 2022 8:21:58 AM MDT	Medium Promotion	A medium post is made to promte the next day's launch.
June 22nd, 2022 9:56:38 AM MDT	Promotional Video	Promotional video on YouTube.
June 23rd, 2022 8:00:00 AM MDT	Launch Date	The launch date of the project.
June 25th, 2022 3:00:22 AM MDT	Theft Transaction	Theft transaction on Avalanche chain.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $15,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

The total amount recovered is unknown.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.