The incident, which unfolded over the weekend, was confirmed by Justin Sun, who serves as an advisor to HTX.
In a recent turn of events, HTX (formerly known as Huobi Global), has fallen victim to a significant security breach resulting in the loss of approximately $8 million worth of Ethereum (ETH).
Swift Response and Assured User Safety
Justin Sun took to social media platform ‘X’ to reveal the unfortunate attack on the crypto exchange. Despite the severity of the breach, Sun emphasized that the exchange has fully covered the losses incurred by the hackers and has successfully resolved all related issues. Importantly, all user assets have remained secure throughout the incident, and the exchange continues to operate normally.
Sun, a well-known figure in the crypto space, shared, “Compared to the $3 billion in assets held by HTX users, $8 million is a small number.” He further added, “This is only equivalent to two weeks of revenue from the HTX platform.”
Prompt Detection and Mitigation
The security breach was swiftly identified by HTX’s security team on September 24th, at 6 PM SGT. Immediate action was taken to prevent any further losses, ensuring that user funds remained unaffected.
Hacker’s Dilemma: Return Funds or Face Legal Consequences
HTX publicly offered a 5% white hat bonus of the stolen amount, equal to $400,000, as an incentive for the hacker to return the pilfered funds. Additionally, the exchange extended an intriguing offer to hire the hacker as a security white hat consultant if they voluntarily returned the funds.
However, Sun made it abundantly clear that if the hacker does not return the stolen funds within seven days, the crypto exchange is prepared to cooperate with law enforcement authorities to pursue legal action against the individual responsible for the breach.
HTX’s First Issue Since Its Rebrand
This security breach marks one of the most significant challenges faced by HTX since its rebranding from Huobi Global on September 13th. The exchange’s rebranding was accompanied by a mission to expand into new markets while focusing on growth, profitability, and partnerships with various blockchain projects and stablecoin initiatives.
Market Impact and Ongoing Developments
The incident has not gone unnoticed by the cryptocurrency community. Tron (TRX), closely associated with Justin Sun, experienced a minor dip of 0.83% in its value on the day of the announcement. Additionally, HTX saw nearly $10 million in outflows, with $2.73 million in customer deposits remaining.
While the hack itself took place on Sunday, it largely remained under the radar until the security firm Cyvers Alerts posted a thread detailing the attack. Justin Sun’s confirmation of the breach came an hour later.
Final Thoughts
As the crypto world watches closely, the key question remains whether the hacker will choose to return the funds within the specified timeframe or face potential legal consequences. HTX’s response to this incident will undoubtedly shape its reputation and future security measures.