HTX’s Troubles Continue: $258 Million Flows Out as Investors React to Cyberattack

are swiftly withdrawing their assets from the cryptocurrency exchange HTX
(formerly Huobi) after a November 22 exploit that forced the exchange to halt
services and incurred a loss of $30 million. Between November 25, when HTX
resumed services, and December 10, the exchange witnessed a significant net
outflow of $258 million, as reported by DefiLlama.

Sun-Affiliated Entities Face Fourth Hacking Incident in Two Months

from DefiLlama reveals that HTX’s reserves consist of 32.3% Bitcoin and
31.8% Tron, the native currency of the Tron network launched by Sun in
2017. As of the latest data, HTX ranks as the 16th largest cryptocurrency
exchange by daily trading volume, totaling $1.6 billion in the last 24 hours
according to CoinMarketCap.

the restart on November 25, Sun assured affected HTX users’ full compensation
for the losses from the hot wallet and stated that an investigation was in
progress. Over the past two months, entities linked to Sun, including HTX,
Poloniex, and the HECO bridge, have faced four hacking incidents.

Offers ‘White-Hat Bonus’ to Identified Hacker

Finance Magnates reported that HTX
had encountered a significant hack on September 24, resulting in the loss
of $7.9 million in digital assets, as revealed by blockchain analytics platform
Cyvers. Uniquely, the exchange claimed to have identified the hacker and made
an unconventional offer.

a message from a Huobi hot wallet, the exchange proposed a “white-hat
bonus” for the hacker, allowing them to retain 5% of the stolen funds if
they returned the remaining 95%. The
hack involved a transfer of 4,999 Ether (approximately $7.9 million) from a
suspected Huobi hot wallet to an address without prior transaction history.

HTX faced challenges,
including regulatory scrutiny and reported detentions in China. Despite these
challenges, the exchange emphasized community involvement in its rebranding,
allowing users to participate in decisions about listed assets. Regulatory
compliance efforts included securing approval from the Financial Services
Commission for the British Virgin Islands and facing regulatory intervention in

November 22, HTX’s HECO Chain bridge experienced a significant breach, with
hackers compromising HECO and transferring at least $86.6 million to suspicious
addresses. The most substantial exploit was the $100 million Poloniex exchange
breach on November 10, attributed to a compromise of private keys.

November marked the worst month for crypto theft in 2023, with hackers and
malicious actors absconding with $363 million in ill-gotten digital assets.

This article was written by Tareq Sikder at

Go to Source

Leave a Reply

Your email address will not be published.

You have not selected any currencies to display