The cryptocurrency exchange HTX, previously known as Huobi, has experienced a series of security breaches over recent months, culminating in a significant hot wallet hack on Wednesday that resulted in the loss of $30 million. Justin Sun, the advisor to HTX, immediately addressed the incident, assuring users that their funds were safe and that they would be fully compensated. Despite the setback, HTX announced on Thursday morning that services had been resumed within 24 hours of the breach, emphasizing the minor impact of the loss on its overall funds.
The exchange has faced a tumultuous period since its rebranding in September when it was first compromised with an $8 million loss. This was followed by another attack on November 22 that led to a $13.6 million loss and the compromise of the Heco bridge with an $86.6 million theft. Additionally, Poloniex, another operation under Justin Sun's purview, suffered a massive $100 million theft on November 10 due to what some suspect as mishandling of private keys.
In total, these security issues have resulted in staggering losses totaling $208 million for Sun’s cryptocurrency ventures in just two months. In response to these incidents, Sun has repeatedly promised investor compensation and has spoken about implementing enhanced security measures to prevent future breaches. However, skepticism remains high within the crypto community, especially after Hacken suggested possible insider involvement and critiques arose regarding lax security protocols.
Moreover, market watchers have noted unusual spikes in the value of TRX following these hacking incidents, sparking discussions around potential market manipulation or strategic moves by influential players. As HTX attempts to navigate through these challenges and restore trust among its users, the broader implications for market confidence in cryptocurrency exchanges remain under scrutiny.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.