Massive $115 Million Crypto Theft Hits HTX, Heco Chain Linked to Justin Sun

Hackers have targeted two prominent cryptocurrency platforms, HTX and Heco Chain, resulting in a staggering theft of approximately $115 million, CNBC reports.

These platforms, linked to high-profile entrepreneur Justin Sun, fell victim to sophisticated exploits, raising concerns about the security of digital assets.

Latest Bigtime Crypto Heist

The HTX digital currency exchange, previously known as Huobi, bore the brunt of the attack, losing an estimated $30 million worth of cryptocurrencies.

Heco Chain, a blockchain bridge allowing swift cryptocurrency exchanges, faced a staggering hit of $85.4 million in stolen assets, largely consisting of stablecoin USDT and ether.

Coindesk reports that Sun, an investor in HTX and associated with the Heco Chain, confirmed the events, signaling his direct involvement in these targeted platforms.

How the Attack Took Place

Blockchain security firm Cyver indicated a suspected private key leak as the gateway for hackers to access the Heco bridge. This flaw allowed unauthorized access to transfer tokens between Heco Chain and Ethereum, paving the way for substantial theft.

The vulnerability of such blockchain bridges has raised concerns about their susceptibility to hacking attempts.

Immediate Actions Taken

HTX swiftly responded by suspending deposit and withdrawal services on both HTX and Heco Chain as a precautionary measure while investigating the attack's origins.

The exchange assured users of implementing urgent measures to safeguard assets and pledged full compensation for losses stemming from the hot wallet attack.

What This Means for the Crypto Market

The fallout from the theft rippled through the market, with the native cryptocurrency of HTX, HBTC, suffering a significant drop in value, plummeting over 5% within 24 hours.

The hackers swiftly moved about 11,100 ether tokens, valued at approximately $23 million, from the HTX exchange.

This maneuver was a result of the theft and some users attempting to withdraw funds from the compromised platform.

Concerns and Precautions

Analysts noted the hackers' preference for converting stolen assets into more liquid forms, such as ether, due to the freezeability risks associated with stablecoins like USDT and USDC.

This massive breach amplifies concerns about the stability and security of the cryptocurrency market, prompting users to reconsider the safety of their investments.

This is not the first time HTX has faced security breaches. In October, hackers stole 500 ether tokens (around $8 million), with the exchange covering all losses post-incident.

According to a report from blockchain analysis firm Chainalysis, cyber criminals stole a record $3.8 billion in cryptocurrency in 2022.

In Other News

According to a cybersecurity study conducted by Georgia Tech researchers, three out of four of the world's most popular websites are endangering the security of tens of millions of users by failing to meet basic password requirement standards.

The research, led by Assistant Professor Frank Li and Ph.D. student Suood Al Roomi from Georgia Tech's School of Cybersecurity and Privacy, used an automated tool to evaluate website password creation policies.

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