$263,000 Stolen from iToken: Possible Internal Involvement?
Recently, iToken (formerly known as Huobi Wallet) experienced a cryptocurrency heist that resulted in the loss of $263,000 worth of users’ assets. The incident has gained attention, especially after police investigations into some former Huobi staff. According to security firm Peckshield, the exploit occurred on October 3. The thief stole $263,000 USDT and 92 TRX minted on the Tron network. The stolen funds were then swapped for approximately 2.9 million TRX, with 1.4 million TRX sent to ChangeNOW exchange and 1.5 million TRX moved to Binance.
Speculations of Insider Involvement
There are speculations that this heist may have been orchestrated by internal staff at Huobi, which would be unprecedented. In September, a former Huobi team member was arrested for implanting a Trojan horse virus that exposed the private keys and mnemonic phrases of some iToken users. Launched in 2018 as the Huobi wallet, iToken is a professional DeFi wallet that allows storage of various digital assets across multiple networks.
Controversies Surrounding Huobi
Huobi, now rebranded as HTX, has been facing controversies recently. On September 25, the exchange was hacked and lost 5,000 ETH worth $7.9 million. However, Tron founder Justin Sun assured users that all assets would be recovered and emphasized the exchange’s security. Crypto expert Dylan LeClair accused Sun of creating a “web of deception” involving users’ assets on Huobi. LeClair claimed that since Sun acquired a controlling stake in late 2022, USDT on the exchange has been replaced by stUSDT, a receipt token for staking USDT. On-chain analysis showed no evidence of the supposed investment in real-world assets.
The Allegations against Justin Sun
LeClair also pointed out concerning transactions by Justin Sun involving JustLend, a Tron-based DeFi lending platform, and stablecoins like USDT and USDC. This led to the conclusion that Sun is maliciously moving USD liquidity out of the crypto space. Currently, HTX’s native token, HT, is valued at $2.36 with a 0.74% gain in the last day. Its daily trading volume has increased by 10.64% and is worth $3.47 million.
Hot Take: Challenges for Huobi’s Reputation
Huobi’s reputation is facing challenges due to the recent crypto heist and controversies surrounding its operations. The alleged internal involvement in the iToken theft raises concerns about the security measures in place within the organization. Additionally, accusations against Justin Sun regarding deceptive practices and moving liquidity out of the crypto space further contribute to the controversy surrounding Huobi. Rebuilding trust with users and implementing stricter security protocols will be crucial for Huobi to regain its reputation in the crypto community.
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