Back to Blog

Lead in: Phalcon's Hack Blocking Saga

April 23, 2024
3 min read

Since BlockSec's debut in 2021, we have long maintained that code auditing alone cannot solve all Web3 security issues. Therefore, we have been investing in exploring new paradigms for Web3 security. Thus we created Phalcon, the world's first crypto hack-blocking system.

Before the launch of Phalcon, the system had been running internally for 2 years, successfully blocking over 20 hacks, and rescuing more than 20 million USD worth of assets, including $3.8M for Saddle Finance, $2.4M for Platypus, $5M for ParaSpace, and more.

In this series of articles, we will present representative stories of our system Phalcon. In sharing these cases, we aim to do more than validate the effectiveness of our system. We also want to demonstrate the transformative effect of proactive defense measures.

In the face of threats, we are not powerless. Together, we can usher in a new era of Web3 security.

Breaking Down: A Comprehensive Overview

About Phalcon

Phalcon is a security platform developed by BlockSec to monitor and block hacks. The system detects suspicious transactions, instantly alerts users, and takes automated actions in response.

Use cases of Phalcon
Use cases of Phalcon

Phalcon is a SaaS platform where users can directly log in through our official website to view different pricing plans and features, and subscribe immediately (supporting both credit card and crypto payments). For any questions, feel free to book a demo with our security experts who will address your concerns.

Support Tool: Phalcon Explorer

Phalcon Explorer is a support tool for the Phalcon platform. This powerful transaction explorer is designed for the DeFi community. It provides comprehensive data on call flows, balance changes, and transaction fund flows, as well as supports transaction simulation. This helps developers, security researchers, and traders to more intuitively understand transactions.

Sign up for the latest updates
OFAC Sinaloa Cartel Sanctions: On-Chain Fund Tracing

OFAC Sinaloa Cartel Sanctions: On-Chain Fund Tracing

OFAC sanctioned a Sinaloa Cartel network for laundering fentanyl proceeds. We traced the six sanctioned addresses on-chain with MetaSleuth, and the money runs almost entirely through centralized exchange deposit addresses.

Zcash Orchard Soundness Bug Analysis | BlockSec Weekly
Security Insights

Zcash Orchard Soundness Bug Analysis | BlockSec Weekly

During the week of June 1, 2026, a critical soundness vulnerability was publicly disclosed in Zcash's Orchard shielded pool circuit, caused by a missing equality constraint in the halo2 ECC scalar multiplication gadget that could have enabled undetectable counterfeiting of ZEC within the Orchard pool through double-spending. The vulnerability, which existed for over four years since Orchard's activation in May 2022, was discovered by an AI-assisted security audit and patched through an emergency network upgrade (NU6.2). This single-event report covers the technical root cause (under-constrained ZK circuit relation), the AI-assisted discovery by researcher Taylor Hornby using Anthropic's Opus 4.8 model, the emergency response timeline, and the broader implications for the ZKP ecosystem.

Crypto Compliance Tools: A Pragmatic Purchasing Guide for VASPs

Crypto Compliance Tools: A Pragmatic Purchasing Guide for VASPs

Procurement framework for VASPs evaluating crypto compliance software. Covers AML controls, wallet screening, KYT, case management, API integration, and cost modeling, with a decision checklist for early-stage, growing, and fully licensed virtual asset service providers.