HTX Cryptocurrency Exchange Hack
In a recent cyber attack, HTX, the rebranded cryptocurrency exchange previously known as Huobi, fell victim to a major hack resulting in the loss of 5000 ETH, equivalent to approximately $7.9 million, as reported by Justin Sun, a trusted advisor to the company.
HTX Cryptocurrency Exchange Hack
The breach was publicly disclosed by Justin Sun, a prominent figure in the cryptocurrency sphere and advisor to the HTX exchange. Taking to social media platforms, Sun conveyed the grim news, stating,
“HTX @HTX_Global has suffered a loss of 5,000 #Eth ($8 million USD) due to a hacker attack.” Assuring the HTX community, Sun reiterated that the platform had fully covered the losses incurred during the attack and promptly resolved all related issues, ensuring the safety of all user assets.
HTX @HTX_Global has suffered a loss of 5,000 #Eth ($8 million USD) due to a hacker attack. HTX has fully covered the losses incurred from the attack and has successfully resolved all related issues. All user assets are #SAFU and the platform is operating completely normally.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 25, 2023
Identifying the Culprits
Sun revealed the Ethereum wallet addresses associated with the hacker behind the exploit, specifically pointing to 0xdb1D74467c9042517A354304256E0d658D8AEC83 and 0x799982b75Ba538F211871cBa50Fa1A42ADa9ab5E. Notably, the majority of the stolen funds, around $6.3 million, were traced to the 0xdb1 wallet. Despite the gravity of the incident, Sun emphasized that the stolen funds represented a relatively small portion compared to the extensive assets held by HTX users, which total over $3 billion.
$8 million represents a relatively small sum in comparison to the $3 billion worth of assets held by our users. It also amounts to just two weeks' revenue for the HTX platform.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 25, 2023
Swift Response and Security Measures
The breach was detected immediately after the incident on September 24, 2023, at 6 pm SGT, prompting the HTX team to take rapid action to mitigate losses and prevent further compromises. All funds were safeguarded, and normal trading operations were resumed promptly after addressing and resolving all the related issues.
Offering a Chance for Redemption
In a surprising move, HTX extended an offer to the hacker, providing an opportunity to return the stolen funds. The exchange proposed a white hat incentive of 5% of the stolen amount, equating to approximately $400,000. Should the hacker choose to return the funds, HTX expressed willingness to consider hiring the individual as a security consultant.
However, a stern warning was issued that if the funds were not returned within seven days, all pertinent details and accounts of the hacker would be handed over to law enforcement agencies, with legal action pursued against them.
Market Impact and Rebranding Efforts
In the aftermath of the breach, the native HT token of the platform experienced a minor dip in its trading value, dropping by 1.03% over the past 24 hours, according to CoinMarketCap. This event follows closely after HTX’s recent rebranding from Huobi less than two weeks ago, a move aimed at bolstering user adoption and expanding its global footprint.
HTX’s strategic rebranding was unveiled on September 13, incorporating elements representing Huobi, Justin Sun’s Tron project, and the essence of the exchange itself. The platform’s ambitions encompass global expansion and a proactive approach to the ever-evolving crypto market, underlining its commitment to maintaining a competitive edge in this dynamic industry.
Caleb is a technical writer at AlteBlock with over 2 years of experience in covering DeFi-related content such as crypto news, exchange reviews, and guides. He is also a Civil engineering graduate who can be found on-site when not writing an article.
