Flexcoin Hack

TOTAL LOST $614K
Low Other

Summarize with AI

ChatGPT Perplexity Claude Grok
Affected Chain 2014 Incident surface
Recovered - No recovery reported
All-Time Rank #955 By amount stolen
Protocol Type Chain Target category

Incident Overview

Official statement:

"On March 2nd, 2014 Flexcoin was attacked and robbed of all coins in the hot wallet. The attacker made off with 896 BTC, dividing them into these two addresses:

1NDkevapt4SWYFEmquCDBSF7DLMTNVggdu

19FcC5jitGwpFKORDd9QNH3eGN56d0Ngy6

As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.

Users who put their coins into cold storage will be contacted by Flexcoin and asked to verify their identity. Once identified, cold storage coins will be transferred out free of charge, Cold storage coins were held offline and not within reach of the attacker. All other users will be directed to Flexcoin's Terms of service located at "Flexcoin.com/118.html" a document which was agreed on, upon signing up with Flexcoin,

Flexcoin will attempt to work with law enforcement to trace the source of the hack

Updates will be posted on twitter as soon as they become available."

Incident Report

Protocol / Project Flexcoin
Date of Incident
Attack Technique Other
Classification CeFi
Primary Source View Post-Mortem

Protocol Information

Protocol Type Chain
Official Website www.flexcoin.com/
Protocol Twitter/X @flexcoin
Team Public / Doxxed
Source Code Unverified

Market Context at Time of Hack

Protocol Links
Reddit

What the Attacker Needed to Succeed

Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.

Technical Knowledge Deep understanding of other and Solidity and EVM internals
Capital Required Seed capital to cover gas and initial position setup
On-Chain Access Ability to interact with smart contracts and deploy a custom exploit contract
Protocol Analysis Identification of the exploitable vulnerability in Flexcoin's contract logic - root cause: cefi
Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block
Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Likely — with a thorough Other audit checklist and test coverage

If you're auditing a protocol with similar architecture to Flexcoin, these are the critical security checks that could have prevented this incident (March 2014).

  • Verify all logic paths related to Other are guarded by proper access controls and input validation
  • Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs

Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.

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