Crypto Platforms Linked to Justin Sun Hit by $115 Million Hack

Crypto Platforms Linked to Justin Sun Hit by $115 Million Hack

Two cryptocurrency platforms associated with digital entrepreneur Justin Sun have reportedly fallen victim to a major hacking incident, resulting in the theft of an estimated $115 million. The affected entities include the HTX digital currency exchange, formerly known as Huobi, and the blockchain bridge Heco Chain.

Details of the Security Breach

HTX has confirmed that hackers siphoned off around $30 million in various cryptocurrencies. Additionally, market analytics firm CryptoQuant estimates that Heco Chain, also linked to Sun, lost approximately $85.4 million, predominantly in stablecoin USDT and ether.

Impact on Cryptocurrency Prices

Following the hack, a significant decline was observed in the price of HTX’s native cryptocurrency, HBTC, which fell more than 5% in the 24 hours following the incident, as per CoinGecko data.

Response from HTX

HTX has announced that it is working to identify the source of the attack and has already taken urgent measures to safeguard user assets. As a precaution, the exchange has temporarily suspended deposit and withdrawal services on both HTX and Heco Chain. The company has also committed to fully compensating users for losses incurred due to the hack, specifically targeting those affected in the hot wallet attack.

Movement of Stolen Assets

CryptoQuant reported that approximately 11,100 ether tokens, worth around $23 million, have been moved from HTX. This movement is attributed to the hackers’ activities and some users attempting to withdraw funds from the exchange. Analysts noted that the hackers are converting their stolen assets into ether, as stablecoins like USDT and USDC can be frozen.

Previous Incidents and Ongoing Concerns

This hacking incident at HTX follows a recent breach at Poloniex, another exchange backed by Sun, where $100 million in cryptocurrencies were stolen. These events underline the persistent security challenges within the cryptocurrency sector and the vulnerability of digital assets to sophisticated cyber-attacks.

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