How much was lost in the House of paper hack?

The House of paper hack resulted in $2K in losses on November 12, 2020.

What attack technique was used in the House of paper exploit?

The House of paper exploit utilized Honeypot. Understanding this attack vector is critical for smart contract auditors and developers building secure DeFi protocols.

How can developers prevent similar smart contract attacks?

Preventing smart contract hacks requires a combination of secure coding practices, thorough security audits, and understanding common attack vectors like reentrancy, oracle manipulation, and access control flaws. Smart Contract Hacking (SCH) provides hands-on training to help developers and auditors identify and prevent vulnerabilities before deployment.

House of paper Hack

TOTAL LOST $2K

Low Nov 12, 2020 Honeypot ethereum

Affected Chain ethereum Incident surface

Recovered - No recovery reported

All-Time Rank #2006 By amount stolen

Protocol Type Exit Scam/Honeypot Target category

Incident Overview

The contract owner could disable the transfer function, which restricted users in selling their tokens.

The contract deployer added initial liquidity at:

https://etherscan.io/tx/0xe07ecf72…7b04ce

The contract deployer used hidden minting functionality under the stakingTransfer() function to generate new tokens onto his wallet at:

https://etherscan.io/tx/0x57fc84ab…624fcb

The minted tokens were sold by the contract deployer at:

https://etherscan.io/tx/0x4ef7dcf6…70a5b7

Incident Report

Protocol / Project House of paper

Date of Incident November 12, 2020

Affected Chain(s) ethereum

Attack Technique Honeypot

Classification Token

Primary Source View Post-Mortem

Protocol Information

Protocol Type Exit Scam/Honeypot

Affected Token H3OF

Official Website houseofpaper.finance/

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 honeypot and Solidity and EVM internals

Capital Required Seed capital to cover gas and initial position setup

On-Chain Access Ability to interact with ethereum smart contracts and deploy a custom exploit contract

Protocol Analysis Identification of the exploitable vulnerability in House of paper's contract logic - root cause: token

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 Honeypot audit checklist and test coverage

If you're auditing a protocol with similar architecture to House of paper, these are the critical security checks that could have prevented this incident (November 2020).

Verify all logic paths related to Honeypot 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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Sources & References

01
Source 1 http://houseofpaper.finance/

Threat Assessment

Severity Level

LOW

Attack Vector Honeypot
Root Cause Token
Year 2020

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