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

<p>Investors
are swiftly withdrawing their assets from the cryptocurrency exchange HTX
(formerly Huobi) after the exploit on November 22 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.</p><p>Justin
Sun-Affiliated Entities Face Fourth Hacking Incident in Two Months</p><p>Data
from DefiLlama has revealed 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.</p><p>Following
the restart on November 25, Sun assured affected HTX users of 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.</p><blockquote><p lang="en" dir="ltr">The HTX exchange, a crypto trading platform linked to China-born industry mogul Justin Sun, has suffered a $258 million net outflow since resuming operations after suffering a major hack <a href="https://t.co/nEN1zJsJ9l">https://t.co/nEN1zJsJ9l</a></p>— Bloomberg Crypto (@crypto) <a href="https://twitter.com/crypto/status/1734030829569949818?ref_src=twsrc%5Etfw">December 11, 2023</a></blockquote><p>HTX
Offers 'White-Hat Bonus' to Identified Hacker</p><p><a href="https://www.financemagnates.com/">Finance Magnates</a> reported that <a href="https://www.financemagnates.com/cryptocurrency/huobi-globals-htx-hit-by-79-million-crypto-heist-offers-hacker-white-hat-deal/">HTX
had encountered a significant hack on September 24</a>, 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. </p><p>In
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. </p><p><a href="https://www.financemagnates.com/tag/htx/">HTX</a> 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
Malaysia.</p><p>On
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 breach of $100 million from Poloniex exchange
on November 10, attributed to a compromise of private keys.</p><p>Notably,
November marked the worst month for crypto theft in 2023, with hackers and
malicious actors absconding with $363 million in ill-gotten digital assets. </p>

This article was written by Tareq Sikder at www.financemagnates.com.