Just a week after the name change of Huobi to HTX, the cryptocurrency exchange fell victim to an $8 million hack. This incident has raised concerns about the security of cryptocurrencies. Binance CEO Changpeng Zhao, also known as CZ, has offered the assistance of Binance’s security team to aid in the investigation. The breach was detected early, giving the hackers less time to act. The attack targeted one of HTX’s hot wallets and resulted in the loss of 5,000 Ether. While the amount stolen is relatively low, it could have been used to access sensitive account information.
Justin Sun’s 5% Bounty, A New Way to Mitigate the Risk?
The unusual response from HTX has caught people’s attention. They have offered the hacker a “white-hat reward” equal to 5% of the stolen funds, approximately $400,000, as a gesture of goodwill. However, there is a 7-day deadline for compliance, and the hacker must return the remaining 95%. In a message directed at the attacker in Chinese, HTX stated that they have confirmed their true identity and threatened judicial intervention if the funds are not returned.
HTX’s Response to the Hack
Justin Sun, Tron founder and HTX advisor, assured users that the exchange will cover all losses. He mentioned that HTX’s $8 million loss is insignificant compared to its users’ $3 billion in assets, which is equivalent to two weeks’ revenue. HTX has implemented real-time monitoring to prevent future losses following the incident. Despite this tragedy, Justin Sun revealed that he invested very little in HTX. He also agreed to livestream discussions on exchange security in English and Chinese with the community.
Binance has yet to respond to this incident as they face their own security challenges. It is clear that risk assets are vulnerable to scams and fraud.
Mixin Network, a decentralized platform, also suffered a major loss of around $200 million due to a breach in a third-party cloud service provider’s database just before the HTX hack. The hacker involved in the HTX hack was found to have previous associations with Mixin. The platform plans to resume normal operations once vulnerabilities are fixed, but the recovery plans for the lost assets remain undisclosed.
Huobi to HTX, Sun Has Bigger Plan for Tron
Separately, TRON founder Justin Sun has introduced a crypto investment project called Staked Tether (stUSDT), which has already attracted over $1.8 billion in investments within three months. However, there are concerns that this project could pose a threat to Huobi Global as the exclusive gateway to stUSDT investment is through the Huobi platform, potentially leading to large fund outflows.
Hot Take: Cryptocurrency Security Under Threat
The recent hack on HTX and other incidents highlight the ongoing threats faced by cryptocurrency exchanges and platforms. Despite efforts to enhance security measures, hackers continue to exploit vulnerabilities. The response from HTX, offering a reward to the hacker and promising to cover losses, is an interesting approach to mitigating risks. However, it remains crucial for exchanges and users to remain vigilant and take necessary precautions to protect their assets in the ever-evolving landscape of cryptocurrency security.
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