© Reuters.
Cryptocurrency exchange HTX, formerly known as Huobi, has experienced a series of security breaches in recent months, culminating in a major hot wallet hack on Wednesday that resulted in the loss of $30 million. Justin Sun, HTX’s advisor, immediately responded to the incident, assuring users that their funds were safe and that they would be fully compensated. Despite this setback, HTX announced Thursday morning that services had been restored within 24 hours of the incident, highlighting the minor impact of the loss on its overall funds.
The stock market has had a tumultuous time since its rebranding in September, when it was first compromised with an $8 million loss. This attack was followed by another on November 22, which resulted in a loss of $13.6 million, and the compromise of the Heco Bridge, which resulted in a theft of $86.6 million. Additionally, Poloniex, another operation under Justin Sun, suffered a massive $100 million theft on November 10 due to what some suspect was mishandling of private keys.
In total, these security issues resulted in colossal losses of $208 million for Justin Sun’s cryptocurrency businesses in just two months. In response to these incidents, Sun has repeatedly promised to compensate investors and talked about implementing enhanced security measures to prevent further breaches. However, skepticism remains high within the crypto community, particularly after Hacken suggested possible insider involvement and criticism arose regarding lax security protocols.
Additionally, market observers have noted unusual increases in the value of TRX following these hacking incidents, sparking discussions of possible market manipulation or strategic moves by influential players. As HTX attempts to overcome these challenges and rebuild the trust of its users, the broader implications for market confidence in cryptocurrency exchanges remain under investigation.
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