After a devastating exploit on November 22nd, crypto investors have been rapidly withdrawing their assets from the cryptocurrency exchange formerly known as Huobi, now rebranded as HTX.
This breach resulted in the exchange suspending its services and incurring losses amounting to $30 million.
In the aftermath, between November 25th, when HTX resumed its services, and December 10th, a staggering $258 million in net outflows were recorded, as per data sourced from DefiLlama.
DefiLlama’s data further reveals that HTX’s reserves are comprised of 32.3% Bitcoin and 31.8% Tron (TRX), which is the native currency of the Tron network, established by Justin Sun in 2017.
Despite the turmoil, HTX, as of the time of this report, remains the 16th largest cryptocurrency exchange in terms of daily trading volume, boasting a total trading volume of $1.6 billion over the last 24 hours, according to CoinMarketCap.
In a bid to reassure affected HTX users, Sun, the founder of Tron, pledged full compensation for losses incurred from the hot wallet breach and assured the public that an investigation was already in progress.
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Sadly, this incident was not an isolated event for HTX and related entities under the Sun umbrella. Over the past two months, they have been plagued by a total of four hacks.
The initial breach occurred shortly after the exchange’s rebranding to HTX on September 24, 2023, with an unknown assailant making off with nearly $8 million in cryptocurrency.
The most significant of these breaches was the $100 million exploit that targeted the Poloniex exchange on November 10th, attributed to a compromise of private keys.
Another substantial breach hit HTX’s HECO Chain bridge on November 22nd, where hackers compromised the bridge and funneled at least $86.6 million to suspicious addresses.
November 2023 was a bleak month for the cryptocurrency world, witnessing a surge in theft as malicious actors pilfered a total of $363 million in ill-gotten digital assets.
Cointelegraph reached out to HTX for a statement, but at the time of reporting, no response had been received.
These ongoing security breaches have cast a shadow of doubt over the safety and trustworthiness of the HTX exchange and related platforms, prompting investors to move their assets elsewhere.
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