HTX, previously Huobi Global, resumes transactions after a $13.6 million breach. The platform swiftly managed the exploit

The cryptocurrency platform HTX, previously identified as Huobi Global, declared it has “effectively managed this assault” and will reinstate deposit and withdrawal services within 24 hours following a $13.6 million security breach on November 22.

In an official statement on November 23 posted on its website, Huobi HTX addressed a recent security incident, committing to fully reimburse the incurred losses and guaranteeing the absolute safety of user funds. The announcement highlighted that the funds compromised in the attack represent only a negligible fraction of the platform’s overall reserves, emphasizing that the regular functioning of Huobi HTX remains unharmed, providing reassurance to its users.

In the statement, HTX said:

“Huobi HTX has successfully managed the recent attack and reiterates its commitment to fully compensate for the losses incurred while ensuring the complete safety of user funds. The funds lost in this incident constitute a minimal portion of Huobi HTX’s total reserves. Importantly, the normal operation of Huobi HTX remains unaffected, providing users with assurance and peace of mind.”

Huobi HTX is actively working to minimize the impact of the security breach by assuring users of comprehensive compensation for any incurred losses. The platform underscores that the financial consequences of the incident are confined, reinforcing user confidence in the continued operational integrity of Huobi HTX.

The statement further communicates the platform’s dedication to promptly reinstating regular services, anticipating the resumption of deposit and withdrawal services on Huobi HTX within 24 hours. Users are advised to stay informed by consistently monitoring the platform’s official announcements for timely updates on the exact timing of the service restoration.

Security Woes Continue for HTX as $13.6 Million Loss Adds to a Series of Exploits

In a sequence of alarming events, HTX faced a substantial security incident on November 22, experiencing an estimated loss of $13.6 million. This incident transpired in the context of an $86.6 million exploit targeting the HECO Chain Bridge, which involved HTX, Tron, and BitTorrent. Notably, all these entities are associated with or effectively overseen by Chinese blockchain entrepreneur Justin Sun.

Cyders, a blockchain security firm, disclosed its findings on the exploit, unveiling that the losses emanated from three compromised hot wallets. In this intricately executed attack, users and exchange assets underwent conversion into Ether (ETH), and the misappropriated funds were then distributed across multiple Ethereum addresses. The consequences of the exploit rippled through a range of coins and tokens, resulting in significant losses, encompassing 1,240 ETH, 7.3 million USDT, 1.78 million USD Coin (USDC), and 62,200 LIN (LINK).

Following the incident, HTX underscored its dedication to safeguarding user assets and information security, pledging to implement all essential measures to forestall future incidents. Nonetheless, this occurrence follows a disconcerting trend, as HTX and entities associated with Sun have encountered four hacks in the last two months.

Security Woes Persist as HTX and Sun-Linked Entities Endure Fourth Hack in Two Months

In a troubling pattern, HTX and entities connected to Justin Sun have experienced yet another security breach, marking the fourth hack in the last two months. The most significant incident occurred on November 10, with a $100 million exploit targeting Poloniex. This event originated from an apparent compromise of private keys, as indicated by blockchain security firm CertiK.

Reacting to the questionable outflows, the Poloniex team quickly deactivated the impacted wallet. On X (formerly Twitter), Justin Sun assured users of the platform’s sound financial standing. He committed to fully compensating affected users and conveyed plans to collaborate with other exchanges for the recovery of the lost funds.

This incident aligns with a troubling trend of security breaches affecting entities linked to Sun. In September, HTX experienced an $8 million loss due to a separate hot wallet exploit. Despite assurances then, asserting that “all user assets are SAFU, and the platform is operating completely normally,” the recurrence of security incidents prompts questions regarding the overall safety and resilience of these platforms.


Leave a comment