Ethereum

<p>Crypto exchange HTX confirmed on Monday that it fell victim to a hack over the weekend, resulting in losses amounting to 5,000 ETH ($8 million).</p><p>HTX stakeholder Justin Sun, Founder of layer one blockchain TRON, disclosed the breach via an<a href="https://x.com/justinsuntron/status/1706311251024822748?s&#61;20" rel="noopener noreferrer nofollow"> X post</a>. In a series of subsequent X posts, Sun assured users and stakeholders that the exchange had promptly covered the losses, and current user deposits remained secure. He also emphasized that the platform was operating normally despite the security incident.</p><h2 id="header-0">Hacker incentive</h2><p>The TRON Founder also extended an offer to the hacker responsible for the breach. He proposed a 5% reward for the return of the remaining funds, a figure notably lower than the 10% often offered to hackers in similar situations. Additionally, Sun dangled the possibility of a job at the exchange. That’s an unusual response to a cryptocurrency hack and one that had one commentator<a href="https://x.com/0xG00gly/status/1706319958680928426?s&#61;20" rel="noopener noreferrer nofollow"> speculating</a> upon the notion that the hacker belonged to the notorious North Korean Lazarus hacking group, pondering the prudence of such a move.</p><p>Data from DeFi data aggregator DeFiLlama revealed that Seychelles-based HTX,<a href="https://medium.com/&#64;coinness.gl/huobi-rebrands-as-htx-to-mark-tenth-anniversary-66060fbad8a" rel="noopener noreferrer nofollow"> formerly known</a> as Huobi, witnessed nearly $10 million in outflows, with a remaining $2.73 million in customer deposits as of the latest data.</p><h2 id="header-1">Hacker’s identity may be known</h2><p>The hacker, who received a series of messages from an address identified as an HTX hot wallet by Nansen, was presented with a stark choice. The messages, written in both English and simplified Chinese, claimed to have<a href="https://etherscan.io/tx/0xde7d57010087028eba13e79d7e5f8abf22637b3c3773550fe892eb16d14df576" rel="noopener noreferrer nofollow"> uncovered</a> the hacker’s true identity and urged the return of the stolen funds to the address 0x18709E89BD403F470088aBDAcEbE86CC60dda12e. In return, HTX offered a 5% “white hat bonus” valid until October 2, 2023. If the funds were not returned by that date, law enforcement would be involved, the message warned.</p><p>The hack came shortly after Justin Sun shared a promotional video in which he depicted himself defeating a hooded figure symbolizing a hacker “shorting crypto” with a single punch while on a spaceship journey to what appeared to be Mars.</p><h2 id="header-2">Insolvency fears</h2><p>On Tuesday, Sun<a href="https://twitter.com/justinsuntron/status/1706535349831545040" rel="noopener noreferrer nofollow"> outlined</a> that the exchange had established a “SAFU” (Safe Asset Fund for Users) fund for platform users. However, taking to X on Monday, Adam Cochran, Managing Partner at Cinneamhain Ventures,<a href="https://x.com/adamscochran/status/1706329246778413559?s&#61;20" rel="noopener noreferrer nofollow"> claimed</a> that there was a likelihood that the HTX business is insolvent. Cochran maintains that available data suggests a shortfall in crypto holdings relative to HTX users&#39; assets.</p><p>Travis Kling, Founder and Chief Information Officer of Ikigai Asset Management, went one further on X,<a href="https://x.com/Travis_Kling/status/1706434414232707478?s&#61;20" rel="noopener noreferrer nofollow"> stating</a>:</p><p>”Not “probably”. Huobi is insolvent.”</p><p>Kling, a long-time critic of Binance, went on to suggest that if Huobi were to collapse, that event would likely lead to Binance unraveling also.</p><p>HTX originated in China and nowadays maintains offices in Singapore, Japan, South Korea, Hong Kong, and the UK. It has long been speculated that Justin Sun has a controlling stake in the HTX business. Sun has denied that assertion, instead suggesting that he is a member of HTX’s “Global Advisory Board.”</p>

Crypto Exchange HTX Reports $8 Million Hack Over Weekend

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