Two Cryptocurrency Platforms Tied to Justin Sun Hacked
Two cryptocurrency platforms associated with well-known digital entrepreneur Justin Sun have been hacked in two separate incidents, resulting in an estimated $115 million in stolen funds.
The HTX digital currency exchange, previously known as Huobi, was targeted in one of the exploits, resulting in a loss of approximately $30 million in cryptocurrencies, according to a statement released by the company. Additionally, the Heco Chain, a blockchain bridge connected to Sun and in which he is an investor, was also attacked, as confirmed by HTX.
Sun has been linked to both projects and confirmed the hacking events. Blockchain bridges like Heco Chain are designed to allow for quick swaps and movement of various cryptocurrencies but have historically been vulnerable to security breaches.
Market analytics firm CryptoQuant has reported that around $85.4 million worth of cryptocurrency, primarily in the stablecoin USDT, has been stolen from Heco Chain. The native cryptocurrency of HTX, HBTC, was also a target of the hack, leading to a more than 5% drop in its value within a 24-hour period, based on data from CoinGecko.
CNBC has reached out to HTX for a response regarding the losses incurred from the Heco Chain hack.
Response to the Hack
HTX is currently investigating the source of the attack and has taken immediate measures to safeguard user assets. As a precautionary step, the exchange has temporarily suspended deposit and withdrawal services on both HTX and Heco Chain.
The company has assured users that they will be fully compensated for any losses resulting from the hot wallet attack, referring to a cryptocurrency wallet connected to the internet. According to data from CryptoQuant, approximately $23 million in ether tokens have been moved from the HTX exchange, largely due to the hackers’ actions, as well as some users attempting to withdraw their funds from the platform.
CryptoQuant analyst Bradley Park mentioned that the hackers are converting their stolen assets into the more liquid ether cryptocurrency, as stablecoins like USDT and USDC can potentially be frozen. Neither Tether, the issuer of USDT, nor Circle, the company behind USDC, have provided immediate comments when approached by CNBC.
Related Incidents
This hack of HTX follows a similar incident earlier in the month involving Poloniex, another exchange supported by Sun, in which $100 million in cryptocurrencies was stolen.
Hot Take
The hacking of cryptocurrency platforms such as HTX and the subsequent theft of millions of dollars in digital assets is a stark reminder of the persistent security challenges faced by the industry. Despite ongoing efforts to enhance security measures, the prevalence of such incidents highlights the importance of diligence and caution when engaging in the crypto space.
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