Two Crypto Firms Tied to Justin Sun Suffer $115 Million Hack

         

Two cryptocurrency platforms linked to entrepreneur Justin Sun were hacked, resulting in $115 million in losses. The affected firms include HTX and Heco Chain.

Hackers Target HTX and Heco Chain

Two cryptocurrency platforms associated with entrepreneur Justin Sun have fallen victim to hacking, resulting in losses totaling approximately $115 million. The targeted projects include the HTX digital currency exchange, formerly known as Huobi, which suffered a loss of around $30 million worth of cryptocurrencies. Additionally, the so-called blockchain bridge Heco Chain, linked to Sun, was also attacked.

Vulnerability of Blockchain Bridges

The attacks on HTX and Heco Chain shed light on the vulnerability of blockchain bridges, which are designed to facilitate fast swaps and movements of various cryptocurrencies across different networks. Market analytics firm CryptoQuant estimated that a total of $85.4 million worth of cryptocurrency was stolen from the Heco Chain, primarily consisting of stablecoin USDT and ether. Moreover, a significant amount of HTX’s native cryptocurrency, HBTC, was also stolen.

Response and Compensation

In response to the attacks, HTX has taken urgent measures to protect user assets and has temporarily suspended deposit and withdrawal services on both HTX and Heco Chain as a precautionary step. The company also pledged to fully compensate for any losses incurred due to the hot wallet attack, emphasizing its commitment to safeguarding user funds.

Asset Movement and Consequences

Data from CryptoQuant revealed that approximately 11,100 ether tokens, equivalent to around $23 million, were moved from the HTX exchange following the hack. According to analysts, this movement primarily resulted from the hackers’ actions and also some users attempting to withdraw their funds from the exchange. Analysts also highlighted the hackers’ strategy of converting stolen assets into more liquid ether due to the potential freezing of stablecoins like USDT and USDC.

Recent Series of Hacks

The hacking incident involving HTX follows a recent hack at Poloniex, another exchange backed by Sun, which resulted in the theft of $100 million worth of cryptocurrencies. This sequence of high-profile hacks has raised concerns about security within the cryptocurrency industry and its susceptibility to malicious cyber activities.

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