Huobi HTX Responds to Recent Hack, Ensures Full Compensation for Affected Users

On November 22nd, 2023, Huobi HTX, previously known as Huobi Global, experienced a significant security breach. This attack led to a substantial loss, initially estimated at $13.6 million but later valued at approximately $30 million. This incident marks another in a series of cybersecurity challenges faced by cryptocurrency exchanges and related platforms.

Following the attack, Huobi HTX issued a statement to its users, reassuring them about the security of their funds. The exchange committed to fully compensating the losses incurred due to the attack, emphasizing its dedication to user fund safety. Despite the substantial loss, HTX clarified that the incident had a minimal impact on the platform’s overall financial health and would not affect its normal operations.

Huobi HTX announced plans to resume deposit and withdrawal services within 24 hours of the incident. In line with its commitment to security, HTX highlighted the importance of protecting user assets and information. The exchange assured the implementation of all necessary measures to prevent such incidents in the future.

This incident is part of a larger pattern of security breaches affecting platforms associated with or managed by Chinese entrepreneur Justin Sun. Notably, the HTX Eco (HECO) Chain bridge, involving HTX, Tron, and BitTorrent cryptocurrency, suffered an $86.6 million loss in a separate attack. In total, HTX and other Sun-related businesses have faced four distinct hacks in the past two months, raising concerns about the robustness of their security measures.

The most notable recent attack was against the Poloniex exchange on November 10th, resulting from an alleged private key breach. This incident led to a loss of $100 million, prompting an ongoing investigation to identify the root cause. A $10 million white hat reward is currently offered for the return of the funds stolen in the Poloniex exploit.

Justin Sun has publicly addressed these incidents, emphasizing ongoing investigations to understand the reasons behind these hacks. He reassured that services would resume once the investigations are complete and the vulnerabilities are addressed.

Image source: Shutterstock