Crypto Exchange HTX Faces $258 Million in Net Outflows | Coinspeaker

Crypto Exchange HTX Faces $258 Million in Net Outflows

UTC by Bhushan Akolkar · 2 min read
Crypto Exchange HTX Faces $258 Million in Net Outflows
Photo: Depositphotos

With HTX exchange and its associated entities facing four major cyber hacks in the last two months, massive outflows have ensued in recent weeks.

The HTX exchange, a digital asset trading platform associated with Tron founder Justin Sun, has experienced a net outflow of $258 million since resuming operations following a significant hacking incident.

Following a security breach on November 22 that led to the temporary suspension of services and a loss of $30 million, crypto investors have been withdrawing their assets from the HTX crypto exchange (formerly known as Huobi). Data from DefiLlama reveals that between November 25, when HTX resumed operations, and December 10, the exchange experienced a net outflow totaling $258 million.

In the last 24 hours, HTX, formerly recognized as Huobi, has demonstrated substantial trading activity with an average volume of $1.6 billion. This also makes HTX the 16th largest crypto exchange globally by trading volumes.

Data from DefiLlama provides insights into HTX’s reserve composition, revealing that Bitcoin constitutes the largest share, accounting for approximately 33% of the exchange’s reserves. The Tron blockchain’s TRX token, launched by industry figure Justin Sun in 2017, holds a significant portion, making up around 32% of HTX’s reserves. Additionally, HTX’s native exchange coin, HT, comprises approximately 14% of the reserves, followed by a token called stUSDT, backed by Justin Sun, holding a 12% share.

HTX’s notable trading volume and diversified reserve portfolio underscore its continued significance and influence in the ever-evolving cryptocurrency landscape.

HTX Exchange Hacks and Issues

In the last two months, entities linked to Justin Sun, including HTX, Poloniex crypto exchange, and the HTX Eco Chain (HECO) bridge, have fallen victim to a series of four cyber attacks.

The initial breach occurred shortly after HTX rebranded to HTX, with an unidentified attacker pilfering nearly $8 million in crypto on September 24, 2023. Subsequently, the largest among the exploits transpired at the Poloniex exchange on November 10, resulting in a $100 million loss and purportedly stemming from a compromise of private keys.

On November 22, the HECO Chain bridge, a crucial tool facilitating the movement of digital assets between HTX and other blockchain networks, experienced a significant breach. In this incident, hackers infiltrated HECO, diverting at least $86.6 million to suspicious addresses.

Notably, November marked the most detrimental month for crypto theft in 2023, witnessing hackers and malicious actors making away with a total of $363 million in illicitly obtained digital assets. The repeated security breaches underscore the heightened vulnerability of Sun-linked entities and the broader cryptocurrency ecosystem to cyber threats.

Altcoin News, Blockchain News, Cryptocurrency News, News
Related Articles