The Huobi exchange admitted to being hacked for 5,000 ETH, equivalent to 7.9 million USD, but did not disclose the identity of the attacker.
Hacking resulted in HTX (Huobi exchange) losing 5,000 ETH. The exchange has fixed the related issue and fully compensated for the loss caused by the hack. On September 25, Justin Sun, senior advisor at Huobi, declared on the X account, “All user assets are safe.”
A suspicious transaction was previously reported on September 24 by blockchain analysis platform Cyvers when 5,000 ETH were moved from Huobi’s hot wallet to an unusual address. Following that, in order to distribute assets, this wallet kept sending 1,000 ETH to a third address.
A representation of the hack that took away 5,000 ETH from the Hu exchange: Cointelegraph.
Illustration of the hack that stole 5,000 ETH from Huobi exchange. Photo: Cointelegraph
One day later, Huobi sent the following Chinese message to the wallet that received 5,000 ETH: “Your real identity has been verified. Please return the money. We will give 5% as a reward for white hat hackers. You have seven days to respond. We will request legal intervention if you do not return it by October 2. We’ll employ you as a security consultant for the exchange if you return it.”
.Medium claims that since hackers haven’t yet used mixers or other anonymous tools for dispersing the stolen ETH, that means they have accepted the risk and will wait until they can withdraw in cash.
Justin Sun additionally continued reassuring the community on X (Twitter), however, he did not publicly reveal the suspect’s identity. He said: “5,000 ETH, or 8 million USD, is a relatively small amount compared to the three billion USD worth of assets we are holding for users. The hack is only equivalent to two weeks’ revenue of the exchange.”
Many people support Huobi’s solution to quickly compensate for the stolen money. Nonetheless, many people are concerned because this exchange has never recorded a hacker attack in its ten years of operation.
The incident happened a few weeks after the Huobi Global team refuted reports that its representatives had been detained in China and the exchange could be suffering a liquidity loss. The hack also occurred not long after cryptocurrency exchange CoinEx lost $70 million.
By the end of 2022, Huobi was among the top three cryptocurrency exchanges globally, after Binance and Coinbase. As of September 26, the trading volume on the exchange reached 673 million USD per day, ranking 10th according to Coinmarketcap statistics. The exchange, which has Chinese origins, had an ownership change at the end of the previous year. Justin Sun, the founder of the TRON cryptocurrency project and the owner of the Poloniex exchange, has taken over as the new boss.
>>>> Officially: The Huobi trading platform has changed its name to HTX.
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