Huobi Global Recovers Stolen Funds and Offers Bounty
Huobi Global’s cryptocurrency exchange HTX has successfully retrieved the funds stolen by a hacker in September and has issued a 250 ETH bounty as a reward. The hacker had drained one of HTX’s hot wallets of 5,000 ETH, equivalent to $8 million at the time. HTX contacted the hacker shortly after the incident and claimed to know their identity. In an effort to resolve the issue, HTX offered a 5% bounty worth around $400,000 and promised not to take legal action if 95% of the funds were returned by October 2. The hacker complied and returned 4997 ETH.
Gratitude Expressed by Huobi Global Investor and Adviser
Justin Sun, an investor and adviser for Huobi Global, expressed gratitude in an October 7 post, stating that the hacker made the right choice by returning the funds. He also thanked everyone in the industry for their assistance in strengthening blockchain security and protecting user assets. Sun emphasized that ensuring full security for user assets is always their goal.
Increase in Hacks During Q3 2023
Hacks have been on the rise during the third quarter of 2023. According to a report from blockchain security platform Immunefi, there were 76 hacks on crypto and Web3 projects/firms in Q3 2023, compared to 30 in Q3 2022. Another incident occurred when decentralized cross-chain protocol Mixin Network was exploited for approximately $200 million after attackers breached a third-party cloud service provider.
Bug Bounty Offered by Mixin Network
Mixin Network offered a bug bounty of $20 million to recover the funds from the hack. However, it seems unlikely that the funds will be returned. Anne Neuberger, the deputy national security advisor for cyber and emerging technology, suggested to Bloomberg that North Korean hackers may be responsible for the Mixin exploit. She noted that the tradecraft used in the hack resembled previous actions by North Korea.
Hot Take: Recovery of Stolen Funds Demonstrates Importance of Security Measures
The successful recovery of the stolen funds by Huobi Global’s HTX highlights the importance of robust security measures in the cryptocurrency industry. With an increasing number of hacks occurring, it is crucial for exchanges and projects to prioritize the protection of user assets. The cooperation between HTX and the hacker, leading to the return of most of the funds, serves as a positive example of resolving such incidents without resorting to legal action. However, it also underscores the need for continuous efforts to strengthen blockchain security and prevent future attacks.
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