In a crypto-world whirlwind response, Binance’s CEO Changpeng “CZ” Zhao wasted no time addressing the recent $8 million hack that jolted the HTX crypto exchange, previously known as Huobi. CZ has promptly extended a helping hand by deploying Binance’s elite security team to join the relentless hunt for the perpetrators behind this digital heist.
On September 25, blockchain analytics platform Cyvers raised the alarm regarding a security breach that drained 5,000 Ether (ETH) worth $1,588 from one of HTX’s hot wallets. This incident highlights the urgent need for swift action when dealing with cryptocurrency thefts, as hackers often employ tactics such as using mixers or converting stolen assets into privacy tokens to cover their tracks.
Taking proactive steps to minimize the fallout, HTX extended an enticing 5% “white-hat bonus” amounting to nearly $400,000 to entice the hacker. The condition stipulated a seven-day window for compliance. This gesture was intriguing because the offer was distinctly conveyed in Mandarin, substantiated by a visible screenshot.
Binance’s CZ Insights On Huobi HTX Security
On a lighter note, CZ playfully commented on the similarity between the rebranded HTX and Sam Bankman-Fried’s FTX exchange. However, he acknowledged that the nature of the losses in both exchanges differed significantly, with HTX falling victim to a hack and FTX being associated with an alleged scam.
In response to a tweet from Tron founder Justin Sun, who also advises HTX, CZ enlisted Binance’s security team to aid in tracing the stolen funds. Sun further assured users that HTX would cover all their losses.
HTX has also enhanced its security, implementing real-time monitoring mechanisms to prevent future breaches. Although Sun denies holding a significant stake in HTX, he committed to conducting live streams in both English and Chinese to discuss exchange security.
This incident occurred shortly after another cryptocurrency platform, Mixin Network, suffered a massive $200 million hack. The breach was related to compromising a third-party cloud service provider’s database. An independent Web3 SaaS analytics platform 0xScope investigation revealed a historical connection between the hacker and Mixin Network.
In 2022, an address linked to the hacker had received 5 ETH from Mixin and subsequently deposited it into Binance. Deposits and withdrawals on Mixin Network will only resume once vulnerabilities are confirmed and rectified. Plans to recover the lost assets for affected users have not been disclosed.
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