HFLH Contract Relaunched Claimed Vulnerability

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HFLH Logo/Homepage

HFLH is a smart contract on the Binance Smart Chain which is both non-profit and all about providing endless wealth creation for members. Apparently, you can profit regardless, even if the price of cryptocurrency goes down, which seems similar to the promises common with ponzi schemes. The mechanisms are explained in a really long description on their website. According to SlowMist, the contract was breached on August 22nd. No other sources could be found to back up the breach, and the project themselves reports that they are adjusting the available yields to increase the profit for members.

About HFLH

"HFLH is here! Risk-free income, can you make a profit even if the price of the currency drops? Innovative pledge lending mechanism to create your source of wealth!"

"The Future Horizons Foundation was established in 2021 and is headquartered in Singapore. It is a non-profit organization focused on the research and application of block chain technology. The Foundation is committed to promoting the development and popularization of block chain technology, and aims to create a more transparent, safe and efficient digital world through technological innovation and cooperation."

"The goal of the Future Horizons Foundation is to promote the development and application of block chain technology through technological innovation and cooperation, and promote social progress and prosperity. Specific goals include technological innovation, universal application, talent training and social responsibility."

"The core goal of the HFLH project is to become a source of wealth for all participants. This means that participants can not only obtain initial income from it, but also continue to obtain income through long-term participation. By designing a stable and promising digital currency ecosystem, HFLH aims to create a sustainable, continuously adding value wealth platform for all members."

"The essence of digital currency is that it represents value. When the price of HFLH is 1BNB and the total amount is 100 million, the total market value is 100 million BNB. For members holding HFLH, this means that their amount of coins directly reflects their wealth. For example, a member holds 1,000 HFLH, and as long as there is sufficient liquidity in the market, they can convert it to 1000BNB at any time. Therefore, the more members holding HFLH, the higher the market activity, the more stable the value of HFLH will be. In this case, the value of consensus becomes obvious. Through extensive market participation and willingness to hold the currency, HFLH can achieve stable value and gain market recognition. The formation of this consensus not only depends on the increase in the number of coins held, but also requires the continued trust and recognition of the value of HFLH by the market."

"The key to HFLH's success lies in building a strong and sustained market consensus. However, this goal cannot be achieved by relying solely on ideas. The pledge loan mechanism provides HFLH with strong value support. When the price of ordinary tokens on the market falls, it often causes panic sell-offs, causing the price of the currency to fall without a bottom line or even return to zero. By pledging loans, members can obtain new currency under the premise of ensuring the safety of the principal. Specifically, when a member pledges 100BNB, they can obtain HFLH tokens worth 75BNB. Without a price increase of more than one-third, this member will not easily sell the tokens in his hand. This mechanism systematically ensures the patient waiting of new participants. Even if the currency price fluctuates, they will not sell the tokens easily. At the same time, when the currency price falls, members can withdraw BNB by withdrawing loans without the need to sell HFLH on the market to avoid trampling."

"The market value of HFLH will inevitably continue to rise with the recognition of the market and the increase of participants. The foundation distributes the increase in market value to all participants in various ways, allowing them to share the benefits of HFLH growth. This revenue sharing mechanism can not only attract more participants to join, but also enhance the confidence of existing members and further promote market activity. By quickly creating value and distributing it to all participants, HFLH can form a virtuous circle: increased market consensus, increased market value, more participants join, and further stabilize and enhance the value of HFLH."

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

"According to monitoring by the SlowMist security team, the staking and lending protocol HFLH on BNB Chain has been attacked. Users are advised to stay vigilant."

Key Event Timeline - HFLH Contract Relaunched Claimed Vulnerability

Date	Event	Description
August 13th, 2024 10:57:02 AM MDT	HFLH Smart Contract Deployed	The original smart contract which was exploited is deployed on the Binance Smart Chain.
August 15th, 2024 5:51:00 AM MDT	HFLH Risk Free Promotion	HFLH is promoted as risk-free income which wan provide a profit even if the price of cryptocurrency drops.
August 22nd, 2024 9:05:00 AM MDT	Adjustment To Mining Yield	The HFLH project announces an adjustment to the mining yield of the smart contract.
August 22nd, 2024 10:50:18 PM MDT	Transaction Referenced	The transaction which is referenced by SlowMist as the breach.
August 23rd, 2024 12:19:00 AM MDT	SlowMist Tweets	SlowMist posts a tweet to highlight finding suspicious activity on the protocol, and warning users to be vigilant.

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 is unknown.

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

"In order to give back to users for their support of the HFLH project and further enhance user participation, we have decided to adjust the mining yield. The new mining yield is as follows:

10-day staking cycle: adjusted from the original 0.1% to 1%

30-day staking cycle: adjusted from the original 0.2% to 1.2%

90-day staking cycle: adjusted from the original 0.3% to 1.5% This adjustment has been officially implemented, and only new staking users can enjoy the new yield. For users who have already staked, you will continue to receive income according to the original yield and will not be affected.

Thank you for your trust and support! The HFLH project will continue to be committed to creating greater value for community members and look forward to your continued participation!"

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

There do not appear to have been any funds recovered in this case.

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.