Justin Sun Introduces SAFU Fund After HTX Security Breach
Justin Sun, a former advisory board member of Huobi (HTX), announced the establishment of the SAFU fund following a security breach that resulted in an $8 million loss. The SAFU fund is designed to prepare for any losses that may occur due to platform security issues. In addition, HTX has implemented real-time monitoring mechanisms to prevent such incidents from happening again. While Sun denies having a significant stake in HTX, he has pledged to conduct livestreams in English and Chinese to address the exchange’s security concerns.
HTX Hack and Resolution
Cyvers, a Web3 security firm, reported that the hack occurred on September 24, during which a hacker withdrew 5,000 ETH from the platform. Sun confirmed the attack but emphasized that the $8 million loss represents only a fraction of HTX’s total assets and is equivalent to the exchange’s fortnightly revenue. He reassured users that the platform is operating normally after successfully resolving the issues that led to the breach.
HTX Offers Reward and CZ’s Support
HTX offered a 5% “white hat bonus” to the hacker amounting to approximately $393,000 if they return the stolen assets by October 2. The platform also claims to have identified the hacker and plans to take legal action if the funds are not returned within a week. Changpeng Zhao, CEO of Binance, offered assistance in investigating the hack and assigned Binance’s security team to help trace the stolen funds. Zhao jokingly mentioned the similarity between HTX and FTX but stressed that HTX’s losses are insignificant compared to user assets on the platform.
Hot Take: Enhancing Security Measures in Response to Breaches
The recent security breach at HTX has prompted the introduction of the SAFU fund and real-time monitoring mechanisms to mitigate potential losses. Justin Sun’s involvement and commitment to addressing the security concerns through livestreams demonstrate the platform’s dedication to enhancing security measures. Although the hack resulted in an $8 million loss, HTX has swiftly resolved the issues and assures users that operations are back to normal. The offer of a “white hat bonus” to the hacker, coupled with CZ’s support from Binance, highlights industry collaboration in combating cyberattacks. These incidents serve as reminders for cryptocurrency platforms to prioritize robust security protocols to safeguard user assets.
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