Crypto exchange HTX loses $8M in weekend hack.

Crypto exchange HTX, formerly known as Huobi, has fallen victim to a hacking attack over the weekend, resulting in losses totaling $8 million. HTX stakeholder Justin Sun confirmed the incident, assuring users that the losses have been covered and current deposits are secure. Sun also made a public offer to the hacker, promising a 5% reward upon the return of the remaining funds and even a job at the exchange.

Tron (TRX), the cryptocurrency associated with Justin Sun, experienced a minimal decline of 0.83% in response to the news. However, HTX witnessed significant outflows of nearly $10 million, leaving only $2.73 million in customer deposits.

The hack occurred on Sunday but went largely unnoticed until security firm Cyvers Alerts posted a thread about the attack. Sun confirmed the incident shortly after, highlighting that the platform operates normally despite the breach.

In an attempt to communicate with the hacker, an address associated with HTX sent messages in both English and simplified Chinese, claiming to have identified the hacker’s true identity. The messages requested the return of the funds to a specific address and offered a 5% white hat bonus if done within seven days. Law enforcement would be involved if the funds were not returned by the deadline.

This hack comes shortly after Sun released a promotional video animation featuring himself defeating a hooded figure representing a hacker “shorting crypto” with a single punch. Sun’s LinkedIn profile identifies him as a member of Huobi’s “Global Advisory Board,” it was previously reported that he acquired a 60% stake in the exchange for $1 billion. However, Sun has denied owning a majority stake.

Despite these developments, both Huobi and Justin Sun’s representatives declined to comment on the matter.

While  Crypto exchange HTX has assured users that their deposits are safe and the platform is operating normally, the incident raises concerns about the security of cryptocurrency exchanges. Hacks and breaches have become common in the crypto industry, with millions of dollars lost due to vulnerabilities in exchange platforms.

As the industry grows, regulators and investors call for increased security measures to protect users’ funds. These incidents highlight the need for robust security protocols and proactive risk management in the cryptocurrency ecosystem.

In the meantime, users of HTX and other exchanges are advised to remain vigilant and follow best practices for securing their digital assets, such as using strong passwords, enabling two-factor authentication, and storing funds in secure wallets.