A whitehat developer has unlocked 1,003 ETH, worth roughly $2 million, from a failed 2016 Ethereum ICO contract where the funds had been trapped for nine years.
What happened in the failed 2016 Ethereum ICO recovery
The recovery involved a project known as HongCoin, a 2016-era ICO that never gained traction and left investor funds locked inside its smart contract. A developer identified a vulnerability in the original HongCoin contract code that could be used to release the stuck ETH back to its rightful owners.
The 1,003 ETH had sat untouched for nearly a decade, growing in dollar value as Ethereum’s price rose. The unlock is notable because it demonstrates that abandoned contracts from the early ICO era can still hold meaningful sums, a reality that major ETH holders like Bitmine, which recently raised its holdings to 5.42 million ETH, understand well as the asset appreciates over time.
How the self-exploit unlocked the trapped ETH
A self-exploit, in this context, refers to deliberately triggering a flaw in a smart contract’s own logic to unlock funds, not to steal them but to return them. Unlike a malicious hack targeting external victims, this operation was carried out by a whitehat developer working to recover assets that had been inaccessible since the ICO failed.
The developer behind the recovery, who goes by @0xFlorent_ on X, disclosed the exploit publicly. The technique exploited a weakness in the HongCoin contract’s withdrawal logic, allowing the trapped ETH to be moved out of the dormant contract.
The distinction matters: this was not a theft or an external attack. The funds were already effectively abandoned inside a contract no one controlled, and the exploit served as a rescue mechanism rather than a security breach. The HongCoin project repository on GitHub confirms the contract code predates many of the security standards now considered essential.
Why this recovery matters for Ethereum users and legacy contracts
The HongCoin recovery highlights a broader reality for Ethereum’s ecosystem. Hundreds of contracts deployed during the 2016-2017 ICO boom remain on-chain, some holding funds locked due to bugs, missing keys, or poorly designed withdrawal functions. These contracts were often written before formal audit practices, standardized libraries like OpenZeppelin, or static analysis tools became widespread.
For Ethereum users, the event is a reminder that dormant contracts are not necessarily empty. Even as the network matures and platforms navigate evolving regulatory frameworks for crypto derivatives, legacy infrastructure from Ethereum’s earliest years continues to surface with real financial consequences.
The recovery also raises questions about how many similar situations exist across the network. As on-chain forensics tools improve and blockchain infrastructure grows more sophisticated, events like the recent Sui mainnet outages show that even modern networks face unexpected technical challenges, let alone contracts written a decade ago.
With whitehat developers increasingly turning attention to legacy code, recoveries like the HongCoin case could become more common. For now, the release stands as a rare instance where a decade-old contract flaw was turned into an opportunity rather than a loss.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
