Cryptocurrency Platforms Linked to Justin Sun Hacked, Estimated $115M Stolen
Exploits Target Justin Sun-Linked Cryptocurrency Platforms
In a shocking turn of events, two cryptocurrency platforms connected to high-profile digital entrepreneur Justin Sun were recently targeted in major hacks. The exploits are estimated to have resulted in the theft of a staggering $115 million to date.
HTX and Heco Chain Hit by Massive Hacks
The HTX digital currency exchange, previously known as Huobi, was one of the platforms targeted by hackers. The company confirmed that approximately $30 million worth of cryptocurrencies was drained as a result of the attack. In addition, the blockchain bridge Heco Chain, also linked to Justin Sun, fell victim to a separate hack, adding to the financial damage.
Justin Sun, an investor in HTX and associated with the Heco Chain, confirmed the distressing incidents, underlining the magnitude of the situation.
Assessment of Cryptocurrency Stolen
Market analytics firm CryptoQuant conducted an assessment which revealed that a total of $85.4 million worth of cryptocurrency was stolen from the Heco Chain. A significant portion of the stolen funds was denominated in stablecoin USDT and ether, adding to the financial blow suffered by affected parties.
A large amount of HTX’s native cryptocurrency, HBTC, was also stolen, leading to a noticeable drop in its price in the market.
Urgent Measures Implemented by HTX
HTX announced that it is actively identifying the source of the attack and has already implemented urgent measures to safeguard user assets. As a precautionary measure, the exchange has temporarily suspended deposit and withdrawal services on both HTX and Heco Chain.
Additionally, the company pledged to fully compensate for any losses incurred due to the hot wallet attack, indicating a commitment to addressing the financial fallout experienced by users affected by the security breaches.
Response from Market Analysts and Experts
CryptoQuant data highlighted around 11,100 ether tokens being moved from the HTX exchange in the aftermath of the attack. This movement is estimated to be worth approximately $23 million, with indications that it is the result of hackers stealing digital coins, as well as some users attempting to withdraw their funds from the compromised exchange. Notably, CryptoQuant analyst Bradley Park suggested that the hackers are converting their stolen assets into the more liquid ether asset due to the potential for stablecoins USDT and USDC to be frozen.
The recent hack of the HTX exchange comes on the heels of another cybersecurity incident involving Poloniex, another exchange backed by Justin Sun. This previous hack resulted in the theft of approximately $100 million worth of cryptocurrencies.
In the wake of these developments, industry experts are urging greater vigilance and enhanced security measures to thwart potential future attacks on cryptocurrency platforms. The unprecedented scale of the recent hacks serves as a stark reminder of the significant cybersecurity risks facing the digital asset space.