March 27, 2024
Huobi Global's HTX crypto exchange faces a $7.9 million security breach
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Huobi Global’s HTX Crypto Exchange Hit by $7.9 Million Hack: Attacker’s Identity Revealed

On September 24th, Huobi Global’s HTX crypto exchange experienced a security breach, resulting in a loss of $7.9 million in cryptocurrency, as reported by blockchain analytics platform Cyvers.

A known Huobi hot wallet communicated with the perpetrator in Chinese, revealing the exchange’s awareness of the attacker’s identity. The exchange made an unusual offer, proposing that the attacker could keep 5% of the drained funds as a white-hat bonus if they returned the remaining 95%. At 10:00 am UTC on September 24th, the suspected Huobi hot wallet with the address 0x2Abc22eb9A09EbBE7b41737CCde147F586EfeB6A transferred 4,999 Ether, approximately valued at $7.9 million, to an address with no previous transaction history.

The following day, a separate wallet associated with Huobi conveyed a message to the attacker in Chinese stating, “We have verified your true identity. Please return the funds to 0x18709E89BD403F470088aBDAcEbE86CC60dda12e. We will offer you a 5% white hat bonus, and this offer remains valid until October 2, 2023. Failure to return the funds by the deadline will lead to a request for judicial intervention.”

Cyvers officially reported the attack on September 25th. Blockchain analytics platform Arkham Intelligence identified the wallet that sent the message as a Huobi hot wallet, and this wallet is also listed on a Huobi support page as belonging to the exchange.

On the morning of September 25th, Huobi Global investor Justin Sun confirmed the attack and revealed that HTX had incurred a loss of 5,000 ETH (equivalent to $8 million USD) due to the hacker’s actions. Sun assured users that their funds were secure and that the exchange was operating normally. He declared that HTX has fully covered the losses resulting from the attack and has successfully resolved all related issues.

In 2023, crypto exchanges have been repeatedly targeted by various hacking incidents, with many of them suspected to be the work of the North Korean-affiliated Lazarus Group. Over the course of the year, this group is believed to have accumulated $40 million in Bitcoin from these attacks.

Image by pixabay

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