Technology
Thursday, November 23rd, 2023 3:04 pm EDT
Key Points
- Significant Cryptocurrency Hacks: Two cryptocurrency platforms associated with entrepreneur Justin Sun, namely the HTX digital currency exchange (formerly Huobi) and the Heco Chain, have fallen victim to separate hacking incidents. These exploits may have resulted in an estimated total theft of $115 million. The HTX exchange reported that hackers drained approximately $30 million worth of cryptocurrencies, and the Heco Chain, a blockchain bridge enabling the fast exchange of various cryptocurrencies, was also targeted.
- Extent of the Hacks and Vulnerabilities: The Heco Chain hack, as assessed by market analytics firm CryptoQuant, reveals a total theft of $85.4 million in cryptocurrency, predominantly in stablecoin USDT and ether. Additionally, a significant amount of HTX’s native cryptocurrency, HBTC, was stolen, leading to a more than 5% decrease in its price within 24 hours. The article highlights the vulnerability of blockchain bridges, connecting different networks, which have proven to be susceptible to hacking incidents.
- Immediate Responses and Compensation: In response to the security breaches, HTX is actively identifying the source of the attack and has implemented urgent measures to protect user assets. As a precautionary measure, the exchange has temporarily suspended deposit and withdrawal services on both HTX and Heco Chain. The company has committed to fully compensating users for any losses incurred due to the hot wallet attack. The term “hot wallet” refers to a cryptocurrency wallet connected to the internet. The article also notes the movement of approximately 11,100 ether tokens, valued at around $23 million, from the HTX exchange following the attack, with hackers reportedly switching their stolen assets into the more liquid ether asset due to concerns about freezing stablecoins USDT and USDC. The hack on HTX follows a recent security incident involving Poloniex, another exchange backed by Justin Sun, where $100 million worth of cryptocurrencies were stolen.
Two cryptocurrency platforms associated with digital entrepreneur Justin Sun have fallen victim to two separate hacks, resulting in an estimated total theft of $115 million. The affected platforms are the HTX digital currency exchange (formerly known as Huobi) and the blockchain bridge Heco Chain, both linked to Sun’s investments.
The HTX digital currency exchange disclosed that hackers drained approximately $30 million worth of cryptocurrencies in the attack. Simultaneously, the Heco Chain, a blockchain bridge that facilitates the swift exchange of various cryptocurrencies, also faced a security breach. Sun, being an investor in HTX and connected to the Heco Chain, confirmed the incidents.
Blockchain bridges like Heco Chain, designed to connect different networks for the rapid transfer of cryptocurrencies, have proven susceptible to hacking. CryptoQuant, a market analytics firm, estimates that a total of $85.4 million in cryptocurrency has been stolen from the Heco Chain, primarily in the form of stablecoin USDT and ether.
The native cryptocurrency of HTX, HBTC, was also a target, resulting in a more than 5% decrease in its price within 24 hours. CNBC reached out to HTX for comments on the losses incurred through the Heco Chain attack.
HTX is actively investigating the source of the attack and has implemented urgent measures to safeguard user assets. In response to the security breach, the exchange has temporarily suspended deposit and withdrawal services on both HTX and Heco Chain as a precautionary measure. The company has committed to fully compensating users for any losses stemming from the hot wallet attack. A hot wallet refers to a cryptocurrency wallet connected to the internet.
Market data from CryptoQuant indicates that approximately 11,100 ether tokens, equivalent to around $23 million, were transferred from the HTX exchange in the aftermath of the attack. This movement is attributed to the hackers switching their stolen assets into the more liquid ether asset. CryptoQuant analyst Bradley Park notes that hackers are opting for ether because stablecoins like USDT and USDC can be frozen.
The HTX hack follows another security incident involving an exchange associated with Justin Sun. Poloniex, backed by Sun, experienced a hack earlier in the month, resulting in the theft of $100 million worth of cryptocurrencies.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/23/htx-heco-chain-crypto-hack-115-million-stolen-so-far.html
