Tuesday, February 27, 2024

HTX Exchange Suffers Massive Outflow of $258 Million After Cybersecurity Attack.

Since reopening following a significant hack, the HTX exchange, a digital asset trading platform connected to Chinese business magnate Justin Sun, has seen a net outflow of $258 million.

According to DefiLlama statistics, the funds departed the exchange between its Nov. 25 restart and Dec. 10, indicating that some customers were uneasy following last month’s security crisis. Following the incident, HTX announced it had temporarily stopped accepting deposits and withdrawals and had lost $30 million worth of cryptocurrency tokens in the hack.

The withdrawal is “a small fraction of our total reserves, indicating a stable and robust platform,” according to an HTX representative. The spokesman went on to say that the exchange is dedicated to offering a “secure and seamless” trading experience.

Additionally, Sun is connected to the HECO Bridge, a network established by HTX to facilitate transactions across blockchains, as well as the Poloniex platform. A cyberattack on Poloniex and HECO in November also resulted in the theft of over $200 million worth of cryptocurrency.

Sun stated in a post on X that an investigation was in progress following the November HTX incident and that the exchange will “fully compensate for HTX’s hot wallet losses.” In September, hackers took $8 million off the marketplace as well.

Top 20 Exchange

As of 6:25 p.m. on December 10 in Singapore, CoinMarketCap data shows that HTX, formerly known as Huobi, had an average trading volume of $1.6 billion over the previous 24 hours, placing it in the top 20 cryptocurrency exchanges by that metric.

Investors in digital assets have grown more sensitive to changes in reserves and flows at virtual currency exchanges since the FTX platform collapsed last year, leaving a massive hole in its records.

Bitcoin makes up the largest portion of HTX’s holdings, or roughly 33%, according to DefiLlama. The TRX currency, which Sun introduced in 2017, holds about 32%. The exchange coin for HTX, HT, accounts for about 14% of the total, with stUSDT, a Sun-backed token, coming in second at 12%.

US fraud claims against Sun center around TRX. He and his companies were accused by the Securities and Exchange Commission of manipulating the market to make the token appear to be actively traded in a lawsuit filed in March. At the time, Sun tweeted that the lawsuit “lacks merit.”

According to security company BlockSec, HTX found the $8 million that had been pilfered in September. It further stated that hackers still seem to be in charge of the $30 million that was stolen last month.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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