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Cryptocurrency Platforms Linked to Justin Sun Hacked

2023.11.24

 

Key Takeaways

  • HTX and Heco Chain, linked to Justin Sun, hit by hacks totaling $115 million.
  • The price of HBTC drops 5% following the security breach.

HTX Exchange Targeted

Two prominent cryptocurrency platforms, HTX and Heco Chain, associated with digital entrepreneur Justin Sun, have fallen victim to cyber-attacks. The incidents led to a substantial estimated theft of $115 million in various cryptocurrencies.

 

HTX, previously known as Huobi, confirmed the theft of around $30 million worth of digital assets. The attack focused on their systems, leading to a significant drain of cryptocurrencies from their reserves. In response, HTX has temporarily halted deposits and withdrawals as a security measure.

Heco Chain Compromised

The Heco Chain, another project linked to Sun, also experienced a similar security breach. This blockchain bridge, designed for fast cryptocurrency swaps, lost about $85.4 million, primarily in USDT and ether, according to CryptoQuant’s analysis.

 

The hack has negatively impacted the value of HTX’s native currency, HBTC, which dropped more than 5% in the 24 hours following the attack. This price decline reflects market reaction to the security breach and the uncertainty it has caused among investors and users.

Exchange’s Response and Measures

HTX has announced measures to identify the source of the hack and protect user assets. The exchange has assured its users of full compensation for any losses incurred due to the breach. This commitment highlights the platform’s attempt to maintain user trust in the wake of the cyber attack.

 

Data from CryptoQuant revealed that approximately 11,100 ether tokens, worth around $23 million, were moved from HTX post-attack. This movement includes hacker activities and user withdrawals in response to the security breach.

Liquidation Strategy of Hackers

Hackers reportedly converted a significant portion of the stolen assets into ether, a more liquid cryptocurrency. This conversion is seen as a strategic move since stablecoins like USDT and USDC can be frozen by their issuers, reducing the risk of hacker transactions being traced or blocked.

 

This recent breach at HTX comes on the heels of another Sun-backed exchange, Poloniex, experiencing a hack earlier this month. That incident resulted in a loss of $100 million worth of cryptocurrencies, underlining the ongoing security challenges in the cryptocurrency industry.

 

CoinW