Crypto Exchange HTX Loses $8 Million in ETH Due to Security Breach, Justin Sun Announces

by Sep 26, 2023CryptoNews0 comments

HTX, previously known as Huobi, has fallen victim to a cyberattack resulting in the loss of 500 Ether (ETH), equivalent to approximately $8 million. This security breach was promptly disclosed by HTX advisor and Tron founder, Justin Sun.

The incident unfolded on a Sunday and was swiftly detected, with HTX taking immediate action to fully compensate for the losses. Justin Sun reassured the community about the safety of funds via the social media platform X (formerly Twitter).

The compromised wallet appears to be one of HTX’s hot wallets, which had accumulated approximately $500 million in deposits from Binance since its establishment in March, as reported by Arkham data.

Justin Sun emphasized the relatively small scale of the loss, stating, “$8 million represents a relatively small sum compared to the $3 billion in assets held by our users. It also accounts for just two weeks’ worth of revenue for the HTX platform.” He further confirmed that all user funds remained secure, and trading operations continued without disruption. The exchange acted swiftly to resolve the issues, restoring the platform to its normal functioning without delay.

In a surprising turn, Justin Sun announced HTX’s willingness to offer the hacker a $400,000 bug bounty in exchange for the return of the stolen funds. He sweetened the deal by extending an offer to employ the hacker as a security white hat advisor, demonstrating a proactive approach to enhancing the platform’s security measures.

Despite the security breach, HTX’s native token, HT token, is currently trading at $2.43, registering a minor 1.24% decrease in the past 24 hours, according to data from CoinMarketCap. The platform appears resilient, maintaining market stability in the face of adversity.

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