Degens Factory Treasury Protection Secured by FailSafe

Amidst the recent wave of high-profile crypto theft, FailSafe is emerging as a trusted partner for builders in the crypto industry who want to keep their funds safe.

Our latest case study explores why Degens Factory chose FailSafe to protect their six-figure treasury.

Background

Degens Factory is a project on the Solana blockchain. The team had raised funds for its token launch. These funds were held in a hot wallet in anticipation of adding liquidity to the token after its launch. However, the wallet where funds were held was not secure.

Several months before the launch, the team had created some hot wallets on Phantom for a testing phase involving a third-party contractor. The private keys of these wallets were stored on the third-party contractor’s computer system.

Although the wallets had been erased after the testing phase was concluded, they were “restored” when the team attempted to generate a fresh wallet address in Phantom. This situation created an attack vector for a potential exploit, unbeknownst to the team.

The third-party contractor suffered a computer hack, leading to a breach of their information, including the private keys to the Degens Factory wallet holding their treasury funds. The treasury funds were summarily stolen from the hot wallet. This created an unsavory situation for the team as well as its community and investors.

FailSafe was tasked with protecting the remaining treasury funds in order to facilitate a successful re-launch of the token without any security hiccups.

Our Solution

The team had raised funds to launch its token on the Solana blockchain. All funds were held in Solana wallets which are currently not supported by FailSafe.

The team bridged their funds to the Polygon blockchain and created a fresh wallet to hold the funds, after which a FailSafe dashboard was created for the treasury hot wallet.

Two-factor authorization was set up to ensure maximum integrity of the team’s FailSafe dashboard. With the flip of a switch, the Degens Factory team activated on-chain protection for their six-figure treasury.

Any attempts to move funds out of the treasury wallet would trigger our safety protocol and whisk said funds to a freshly created non-custodial recovery vault. The entire process cost less than $5 in gas fees.

Outcomes

A top priority for Degens Factory was to forestall any repeat occurrences of losing investors’ funds. With FailSafe, the team was guaranteed a safety mechanism that works even in worst-case scenarios.

Another major concern was regaining the confidence of its community and providing assurances of the treasury’s security. We’re proud to note the overwhelmingly positive response to our partnership announcement from their community.

Our intervention helped to calm frayed nerves, restore confidence in a quality team, and remind crypto users that they have a fighting chance against theft.

With FailSafe’s wallet security suite safeguarding its treasury, Degens Factory quickly rallied support and rebuilt trust with the community. The token was launched successfully and without any further complications.

FailSafe is the ultimate wallet security suite, empowering you to fight back against crypto thieves. With our battle-tested tools, individual users and enterprises are beating scams with a 99% accuracy rate.