Table of Contents
HTX Exchange and Heco Chain Fall Prey to Cyberattacks, Sending Shockwaves Through Cryptocurrency Markets
- Justin Sun-associated platforms, HTX and Heco Chain, succumb to hacking, tallying up a colossal $115 million in losses.
- Prices of cryptocurrencies like HBTC, USDT, and ether waver as hackers strategically shift stolen assets, adding uncertainty to the crypto market.
- Following the recent Poloniex hack, the incidents underscore the urgent need for enhanced security measures in the cryptocurrency industry.
Two cryptocurrency platforms associated with Justin Sun, a prominent digital entrepreneur, fell victim to hacking incidents. The total estimated losses from these exploits amount to a staggering $115 million.
The targeted platforms based on reports obtained include the HTX digital currency exchange, formerly known as Huobi, and the Heco Chain blockchain bridge. The susceptibility of blockchain bridges to hacking became evident in these incidents. According to CryptoQuant’s assessment, the Heco Chain hack alone resulted in the theft of $85.4 million worth of cryptocurrencies. Notable among the stolen assets were USDT, ether, and HTX’s native cryptocurrency, HBTC.
The repercussions extended to the cryptocurrency market, impacting the prices of affected assets such as HBTC, USDT, and ether. CryptoQuant’s insights reveal that hackers opted to convert stolen assets to the more liquid ether due to the potential freezing of stablecoins USDT and USDC.
Also Read: KBank of Thailand Acquires Majority Share in Local Crypto Exchange Satan
Response from HTX and Market Analysis
HTX promptly confirmed the hacking events and initiated actions to identify the source of the attacks. As a precautionary measure, both deposit and withdrawal services were temporarily suspended on HTX and Heco Chain. Notably, HTX expressed a commitment to fully compensate users for losses incurred during the hot wallet attack.
The market experienced notable turbulence in the wake of these hacks. Prices of affected cryptocurrencies, including HBTC, USDT, and ether, were influenced. CryptoQuant analyst Bradley Park shed light on the hackers’ strategy, pointing out their preference for converting stolen assets into ether due to the potential freezing risk associated with stablecoins.
In a parallel incident, another exchange linked to Justin Sun, Poloniex, suffered a recent hack resulting in the theft of $100 million worth of cryptocurrencies. This incident adds to the growing concerns regarding the security of cryptocurrency exchanges.g
Company Responses and Contact Attempts
HTX promptly responded to the breaches by committing to compensate for losses and implementing urgent measures to safeguard user assets. The temporary suspension of deposit and withdrawal services on both HTX and Heco Chain underscores the gravity of the situation, as the company actively seeks to identify the source of the attack.
Despite CNBC’s attempts to gather insights, HTX’s specific comments on the losses incurred by Heco Chain remain pending. Additionally, major players in stablecoin issuance, Tether, and Circle, were unavailable for immediate comments on the situation. The ongoing developments highlight the imperative for heightened security measures within the cryptocurrency industry, as incidents of this nature continue to underscore vulnerabilities in the ecosystem.
Enhance Your Crypto Trading Skills With Our Legends’ Trading Masterclass
Empower your crypto trading skills with our Legends Masterclass. Sign up now and take advantage of our limited-time discount offer! Join the class today.
