HTX cryptocurrency exchange witnesses withdrawals surpassing $258 million after security breach.

Discover why crypto investors are moving away from HTX (formerly Huobi) after a $30 million exploit, resulting in a temporary suspension of services.

Dec 11, 2023 - 12:19
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HTX cryptocurrency exchange witnesses withdrawals surpassing $258 million after security breach.
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Crypto investors have been shifting their assets away from HTX (formerly Huobi) after the exchange experienced a $30 million exploit on November 22, resulting in a temporary suspension of its services. Between November 25, when HTX resumed its operations, and December 10, the exchange saw net outflows totaling $258 million, according to data from DefiLlama.

DefiLlama data reveals that HTX's reserves consist of approximately 32.3% Bitcoin and 31.8% Tron (TRX), the native currency of the Tron blockchain launched by Justin Sun in 2017. Currently, HTX ranks as the 16th largest cryptocurrency exchange by daily trading volume, with a total of $1.6 billion in trading volume over the last 24 hours, as per CoinMarketCap data.

Following the November 22 exploit, Justin Sun, the founder of Tron, pledged full compensation for affected HTX users and initiated an investigation. Unfortunately, HTX and other entities connected to Sun, including Poloniex and the HTX Eco Chain (HECO) bridge, have suffered four separate hacks over the past two months.

The first hack took place shortly after HTX rebranded as HTX, with an unknown attacker stealing nearly $8 million in crypto on September 24, 2023. The most significant breach involved the Poloniex exchange, resulting in a $100 million loss on November 10, allegedly due to a private key compromise.

Additionally, HTX's HECO Chain bridge, designed for transferring digital assets between HTX and other blockchain networks, suffered a major breach on November 22, with hackers compromising HECO and transferring at least $86.6 million to suspicious addresses. November marked the worst month for crypto theft in 2023, with hackers and malicious actors absconding with $363 million worth of ill-gotten digital assets.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.