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<\/p>\n
- \n
- Huobi fell victim to a cyberattack resulting in the theft of $7.9 million in cryptocurrencies.<\/em><\/li>\n
- Despite the breach, Huobi\u2019s native token only saw a minor price decline of 0.61%.<\/em><\/li>\n<\/ul>\n
HTX [HT]<\/a>, formerly Huobi, a prominent Hong Kong-based centralized cryptocurrency exchange, faced a cyber-attack on 24 September that resulted in significant losses. As reported by blockchain analytics platform Cyvers, the hacker managed to steal approximately $7.9 million worth of cryptocurrencies.<\/p>\n
\nRealistic or not, here\u2019s HT\u2019s market cap in BTC terms<\/a><\/p>\n
\nAnother one bites the dust<\/h4>\n
During this attack, a Huobi hot wallet took an unusual step. It sent a message to the attacker in Chinese, expressing awareness of the attacker\u2019s identity and offering a \u201cwhite-hat bonus\u201d of 5% of the stolen funds if the remaining 95% was returned.<\/p>\n
\n
\ud83d\udea8Red Code\ud83d\udea8Yesterday, our ML-powered system detected a suspicious transaction involving @HuobiGlobal<\/a> and @HTX_Global<\/a>.
Despite our attempts to reach out, we received no response. An EOA received 5K $ETH<\/a> $7.9M from @HuobiGlobal<\/a>‘s hot wallet.<\/p>\n\ud83d\udd0d This morning, we spotted\u2026 pic.twitter.com\/3oqHhAVi8P<\/a><\/p>\n
\u2014 \ud83d\udea8 Cyvers Alerts \ud83d\udea8 (@CyversAlerts) September 25, 2023<\/a><\/p>\n<\/blockquote>\n
This hot wallet, which sent the message, was identified by blockchain analytics platform Arkham Intelligence<\/a> as belonging to Huobi. Furthermore, this assertion was supported by information found on a Huobi support page.<\/p>\n
Analyzing Huobi\u2019s cryptocurrency holdings, lookonchain\u2019s data revealed that HTX currently holds a substantial $2.96 billion in assets. This included notable holdings like 29.65K BTC valued at approximately $779.7 million and 9.16 billion TRX worth around $775.6 million.<\/p>\n
Justin Sun addresses the public<\/h4>\n
In response to the security breach, Justin Sun, an investor in Huobi, took to Twitter to address the situation. He assured the cryptocurrency community that HTX managed to cover the losses incurred during the attack and has effectively resolved all related issues.<\/p>\n
He emphasized that user assets were secured through the Secure Asset Fund for Users (SAFU) and that the exchange was operating normally.<\/p>\n
\n
HTX @HTX_Global<\/a> has suffered a loss of 5,000 #Eth<\/a> ($8 million USD) due to a hacker attack. HTX has fully covered the losses incurred from the attack and has successfully resolved all related issues. All user assets are #SAFU<\/a> and the platform is operating completely normally.<\/p>\n
\u2014 H.E. Justin Sun \u5b59\u5b87\u6668 (@justinsuntron) September 25, 2023<\/a><\/p>\n<\/blockquote>\n
Justin Sun also provided perspective on the scale of the breach. He said,<\/p>\n
\n
\u201c$8 million represents a relatively small sum in comparison to the $3 billion worth of assets held by our users. It also amounts to just two weeks\u2019 revenue for the HTX platform.\u201d<\/p>\n<\/blockquote>\n
Additionally, Sun issued a stern warning to the hacker. He stated that if the stolen funds were not returned within seven days, Huobi would involve law enforcement authorities for further action, including prosecution of the attacker.<\/p>\n
Skepticism remains high<\/h4>\n
Despite Sun\u2019s attempts to restore confidence in Huobi, there were lingering doubts within the cryptocurrency community regarding the exchange\u2019s financial stability.<\/p>\n
Notably, Adam Cochran, the founder of Cinneamhain Ventures, expressed concerns about Huobi\u2019s solvency.<\/p>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/F64VWOhWUAAJP2d.png\")
<\/a><\/p>\nSource: Defi Llama<\/p>\n<\/div>\n
Cochran highlighted discrepancies between Huobi\u2019s claims and data from Defillama. The discrepancy was related to the amount of assets held, notably in ETH and USDT.<\/p>\n
He suggested that Justin Sun might be manipulating user assets by converting USDT into stUSDT, using them to support JustLend, and engaging in other activities.<\/p>\n
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1\/6<\/p>\n
Oh btw Huobi is probably insolvent again.<\/p>\n
Claims to have $200M in ETH, defillama shows less than $113M even if you add in weth and steth.<\/p>\n
Claims users hold $624M in USDT. But there is only $119M USDT in the exchange. pic.twitter.com\/zghTpGRBzn<\/a><\/p>\n
\u2014 Adam Cochran (adamscochran.eth) (@adamscochran) September 25, 2023<\/a><\/p>\n<\/blockquote>\n
Cochran estimated that this could potentially lead to a debt of approximately $2.4 billion in user assets spread across Huobi and the Tron ecosystem, all without the users\u2019 awareness.<\/p>\n
\n - Despite the breach, Huobi\u2019s native token only saw a minor price decline of 0.61%.<\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Huobi-Token-HT-11.49.23-26-Sep-2023.png\")