March 27, 2024
Binance CEO offers support to investigate HTX's $8 million breach
Latest Cryptocurrency News

HTX Crypto Exchange Hack: Binance CEO and Security Team Join the Investigation

Shortly after crypto exchange HTX (formerly known as Huobi) reported an $8 million hack, Binance CEO Changpeng Zhao offered assistance from Binance’s security team to investigate the incident.

Swift intervention is crucial for tracking and recovering stolen cryptocurrencies, as hackers often employ tactics like mixers or converting stolen assets into privacy tokens to cover their tracks. On September 24, blockchain analytics platform Cyvers detected a hack that siphoned 5,000 ETH from one of HTX’s hot wallets. In a proactive move to mitigate the damage, HTX offered a white-hat bonus equivalent to nearly $400,000, which amounts to 5% of the pilfered funds. However, the hacker was given a seven-day window to comply with this offer. HTX communicated this in Mandarin (Chinese).

Responding to a tweet from Tron founder Justin Sun, who also serves as an advisor to HTX, CZ assigned Binance’s security team to assist in tracing the stolen funds. Furthermore, Sun assured that HTX would cover all losses incurred by its users and stated that $8 million is relatively minor compared to the $3 billion in assets held by users, and it represents just two weeks’ revenue for the HTX platform. HTX also implemented real-time monitoring measures to prevent such losses. While Sun denied holding a significant stake in HTX, he pledged to conduct several live streams in both English and Chinese to discuss exchange security.

Just a day prior to the HTX hack, the decentralized peer-to-peer network Mixin Network suffered a nearly $200 million hack related to the compromise of a third-party cloud service provider’s database. An independent investigation by Web3 SaaS analytics platform 0xScope revealed the hacker’s historical ties to Mixin Network. In 2022, an address associated with the hacker received 5 ETH from Mixin, which was subsequently deposited into Binance. Deposits and withdrawals on the Mixin Network will resume once vulnerabilities are confirmed and rectified. Plans for recovering the lost assets of users were not immediately disclosed.

Image by freepik

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