Two cryptocurrency Platforms linked to digital entrepreneur Justin Sun were the target of recent attacks by hackers that may have resulted in the theft of digital assets worth more than $115 million.
According to CNBC on November 23 reportthe first platform hacked It was the HTX cryptocurrency exchange, formerly known as Huobi. According to a statement released by the company on November 23, hackers were able to drain approximately $30 million worth of various cryptocurrencies from HTX by compromising what are known as "hot wallets."
Hot wallets are one of the cryptocurrency hacks and refer to cryptocurrency wallets connected to the internet to enable convenient trading and transactions.
However, this also makes them more susceptible to cyberattacks than โcold walletsโ that are kept offline.
In addition to the funds stolen directly from HTX, the hackers also breached an associated blockchain bridge called Heco Chain. Blockchain bridges allow different cryptocurrency networks to interconnect for faster asset transfer.
According to market analysis firm CryptoQuant, losses from the Heco Chain exploit total an estimated $85.4 million, primarily from the popular stablecoins USDT and Ethereum. A considerable amount of HTX's native HBTC coin is also believed to have been drained.
In the wake of the confirmed attacks, HTX has implemented emergency measures to protect remaining assets, including temporarily suspending all deposits and withdrawals on both the HTX exchange and the Heco Chain bridge. The company also pledged to โfully compensate for losses incurred due to the hot wallet attack,โ although it did not provide details on how refunds would work.
The exploits targeting Sun-linked HTX and Heco Chain came on the heels of a separate attack on the Poloniex cryptocurrency exchange in early November.
Poloniex is backed by Sun and lost approximately $100 million in digital resources in the cyber attack. Sun is a prominent entrepreneur in the cryptocurrency space and is the founder of file storage blockchain Tron.
These latest incidents highlight the current vulnerabilities in both centralized exchanges and blockchain bridges when it comes to hacking and theft, showing how weak the centralized points of decentralized systems are. As the cryptocurrency market continues to grow, cyberattacks have become more sophisticated and costly. Many industry experts believe that stricter security and oversight standards need to be implemented for widespread adoption to occur.
Meanwhile, HTX has stated that they are working diligently to identify the sources of the attacks and prevent new vulnerabilities. However, this will likely do little to console users who lost funds and face an uncertain path to any type of compensation or refund. The company and the broader cryptocurrency field have important work to do to strengthen security and rebuild trust.
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