HTX Crypto Exchange Bleeds $258M After November Hack

Dec. 11, 2023
HTX Crypto Exchange Bleeds $258M After November Hack

The HTX exchange, a digital asset 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. HTX has struggled to keep its poise following an attack on November 22, which led to the loss of $30m as investors have since withdrawn their assets en masse. Faced with a mammoth departure in light of the exploit, HTX has temporarily halted services. The repercussions for the exchange are relatively steep overall.

Investor Exodus: $258M Outflows Rock Crypto Exchange

Data by DefiLlama now points to net outflows worth a staggering $258m between November 25 – the day HTX resumed operations – to December 10. Many investors on the site lost trust as a result of the security compromise. This prompted them to withdraw their investments from the exchange.

Source: DefiLlama

Breaking down HTX’s reserves, DefiLlama’s findings indicate that 32.3% of the reserves are in Bitcoin, while 31.8% are in Tron (TRX). People say that Justin Sun founded Tron 2017 as one of his projects to represent a native currency for the blockchain network. According to data by CoinMarketCap, the latest information suggests that with $1.6 billion over the last 24 hours, HTX is the 16th largest crypto exchange concerning daily trading volume.

After resuming its services on November 25, Justin Sun, who is affiliated with HTX, made a promise. He assured that the company would generously compensate all users affected by the hack of its hot wallet. The compensation is intended to cover any losses incurred during the security breach. Sun is investigating thoroughly to bring the identified criminals behind the hack to justice.

Sun-Linked Entities Hit $363M Crypto Heist

Disturbingly, it’s not an isolated incident for Sun-linked entities either. Over the past two months, HTX has experienced four hacks, affecting platforms like the crypto exchange Poloniex and the HTX Eco Chain (HECO) bridge. The first happened on September 24, less than two weeks since HTX rebranded itself and managed to cart away almost $8 million. The most epitomizing breach was the heist of $100 million from Poloniex on November 10, triggered by a compromised private key.

Additionally, a huge attack occurred on November 22. The HECO Chain bridge facilitates the movement of digital assets between HTX and other blockchain networks. Unfortunately, it was the victim of this attack. Hackers accessed HECO channels, transferring at least $86.6 million to suspicious addresses.

In November 2023, hackers and malicious actors pocketed $363 million in ill-gotten digital assets. This makes it the worst month for crypto theft to date. At the same time, the multiple security breaches have spotlighted entities linked to Sun. It raises bigger questions about the overall strength of platforms and how they secure user funds.

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Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.