HTX, along with Poloniex, Heco Bridge, KyberSwap, and Kronos Research, bore the brunt of a tumultuous November in the cryptocurrency market. Hackers targeted these five major exchanges, resulting in a staggering $290 million being swiped. These incidents underscore the urgent necessity for bolstered cybersecurity measures.
Amidst the chaos, questions arise about potential nefarious activities behind the scenes or the possibility of yet another scam in progress. With HTX holding the majority of Bitcoin, the pivotal question emerges — will this upheaval impact the market and trigger a surge in Bitcoin prices?
With Bitcoin recently reaching $45,000, a stable trajectory could pave the way for a promising 2024.However, before speculating further, let’s delve into the details surrounding these recent hacks.
HTX Exchange: Bloomberg Report Reveals A Staggering $258 Million Loss Post-Hack
According to a recent Bloomberg report, the HTX exchange, associated with industry heavyweight Justin Sun, suffered a staggering $258 million loss upon reopening after the hack. Two other platforms linked to Sun also fell victim to hacks, exceeding $100 million in losses, prompting concerns of a potential exit scam.
Insights gleaned from DefiLlama data reveal a substantial outflow of funds from HTX between November 25 and December 10, suggesting the aftermath of the security incident. Despite the $30 million loss in the breach, HTX pledges to conduct a thorough investigation and fully compensate affected users.
The plot thickens as we explore Justin Sun’s connections to Poloniex and HECO Bridge, both targeted in the November hacks. Sun’s Tron blockchain token TRX, a significant asset at HTX, faced US fraud allegations earlier this year, amplifying concerns about the hacks and Tron’s potential involvement in dubious dealings.
Despite the hack and substantial losses, HTX, formerly known as Huobi, maintains its position as a top 20 exchange by trading volume, surpassing $1.6 billion in the past 24 hours, according to CoinMarketCap. Nevertheless, the breach has unsettled digital asset investors, reminiscent of FTX’s collapse the previous year.
In response to the breach, Justin Sun assures full compensation and additional rewards for affected users, aiming to rebuild trust and encourage greater participation in Tron’s network. Notably, the majority of HTX’s reserves are in Bitcoin and TRX tokens, aligning with Sun’s Tron blockchain projects. Lingering concerns about the exchange’s security persist as the security firm BlockSec grapples with resolving the November breach and recovering the stolen assets.