Crypto Exchange HTX Recovers $8 Million Lost to Hacker in Recent Security Breach

adobestock-sergey-nivens-1-1 — Source: AdobeStock / Sergey Nivens

HTX, the crypto exchange operated by Huobi Global, has successfully regained the funds that were stolen by a hacker in a security breach that occurred in late September.

After reseiving the funds, HTX also offered the hacker a 250 Ether bounty as a token of appreciation.

“We have confirmed that the hacker has fully returned all funds, as promised, and we have also paid the hack a white hat bonus of 250 ETH,” Huobi Global investor and HTX adviser Justin Sun said in a recent post on X (formerly Twitter).

We have confirmed that the hacker has fully returned all funds, as promised, and we have also paid the hack a white hat bonus of 250 ETH. The hacker made the right choice. We would like to express our gratitude to everyone in the industry for their help! https://t.co/SwY49A25h2

— H.E. Justin Sun 孙宇晨 (@justinsuntron) October 7, 2023

Sun also emphasized the ongoing commitment to strengthening blockchain security and protecting user assets, acknowledging the challenges associated with this task and expressing appreciation for the support of HTX’s users and community.

As reported, HTX experienced a security breach in late September that resulted in the loss of $8 million worth of crypto assets.

The breach involved the draining of 5,000 ETH from one of HTX’s hot wallets.

Following the hack, HTX promptly reached out to the hacker and claimed to have identified their identity.

In an effort to recover the stolen funds, HTX offered a 5% bounty amounting to around $400,000 and proposed not to pursue any legal action if 95% of the funds were returned before the deadline of October 2.

Hacks Continue to Plague the Crypto Space

The incident involving HTX is one among several security breaches that have plagued the crypto space in the third quarter of 2023.

According to a report by blockchain security platform Immunefi, there were 76 hacks on crypto and Web3 projects and firms in Q3 2023, a significant increase compared to the 30 hacks reported in the same period in 2022.

In total, approximately $332 million has been lost to various exploits, hacks, and scams throughout September, marking a record-high month for crypto exploits.

One notable event was the Mixin Network attack on September 23. The Hong Kong-based decentralized cross-chain transfer protocol suffered a substantial breach, resulting in a loss of $200 million due to a breach of its cloud service provider.

Another major incident occurred on September 12, when CoinEx, a cryptocurrency exchange, experienced a suspected attack following a substantial outflow from four of its hot wallets. This breach led to losses exceeding $53.1 million across the hot wallets.

More recently, Stars Arena, a social platform supported by Avalanche’s Contract Chain, has fallen victim to a significant security breach.

In a Saturday tweet, the official Stars Arena Twitter account issued a warning confirming that the platform’s smart contract had been attacked.

The team urged users not to deposit any funds while the issue was being investigated.