Massive Outflows from Crypto Exchange Following Security Breaches
After security breaches at three Justin Sun-affiliated platforms, including Heco Bridge and Poloniex, there were significant outflows from the crypto exchange. Users withdrew assets worth an estimated $258 million between Nov. 25 and Dec. 10, suggesting concerns about safety at the exchange.
Hacks and Losses
The net outflows were a result of a hack on HTX on Nov. 22, with over $23 million stolen. Heco bridge was also exploited for around $85 million. In total, over $100 million was lost during the breach. Prior to this, hackers stole $100 million in cryptocurrencies from Sun’s Poloniex exchange, and HTX lost $8 million to bad actors in September 2023.
Sun’s Response
In response to the hacks, Sun offered a $10 million bounty for the return of stolen funds from Poloniex’s hacker and promised to fully reimburse affected users in the HTX and Heco bridge incidents. He also announced an airdrop as compensation.
HTX’s Ranking and Reserves
HTX was ranked 17th among centralized crypto exchanges with an average daily trading volume of $1.6 billion. The platform held reserves of cryptocurrencies such as HT, HBTC, Bitcoin (BTC), and staked Ether (stETH).
Sun’s Milestone Achievement
Despite the security breaches and losses, Sun celebrated reaching 200 million accounts on his blockchain project. He announced an airdrop of free TRX tokens to commemorate this milestone.
Hot Take: Crypto Exchange Faces Significant Outflows After Security Breaches
A series of security breaches at Justin Sun-affiliated platforms has resulted in massive outflows from the crypto exchange. With over $220 million in losses, users are clearly concerned about the safety of their assets. Sun’s response, including offering a bounty and promising full reimbursement, is an attempt to restore confidence. However, the reputation of the exchange has been tarnished, and it remains to be seen whether these measures will be enough to regain trust. The incident serves as a reminder of the importance of robust security measures in the crypto industry.
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