HTX Sees $258 Million in Net Outflow Since Resuming Operations Last Month

Last updated: December 11, 2023 00:08 EST
. 1 min read

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Justin Sun-linked crypto exchange HTX has seen $248 million in net outflow since resuming operations after a major security breach last month.

The breach resulted in the loss of $30 million worth of crypto tokens and prompted HTX to temporarily halt withdrawals and deposits.

According to DefiLlama data, the substantial outflow occurred between the exchange’s November 25 restart and December 10, indicating that some clients were not reassured after the security incident. Despite the exchange’s assurances of a thorough investigation and a commitment to fully compensate for the losses from HTX’s hot wallet, concerns persist among users.

Justin Sun-Linked Platforms Exploited for $200 Million

Justin Sun, a key figure linked to HTX, is also associated with the Poloniex exchange and the HECO Bridge, both of which experienced hacks in November, resulting in the theft of approximately $200 million in crypto.

Sun has faced scrutiny, with the TRX token from the Tron blockchain, which he launched in 2017, at the center of US fraud allegations.

The Securities and Exchange Commission filed a lawsuit in March accusing Sun and his firms of market manipulation to artificially inflate TRX trading activity.

HTX’s reserves, as of December 8, reveal that about 33% is comprised of Bitcoin, while the TRX token represents around 32%. HTX’s exchange coin, HT, accounts for approximately 14%, and a Sun-backed token called stUSDT makes up 12% of the reserves.

Security firm BlockSec reported that HTX successfully recovered the $8 million stolen in September. However, hackers still retain control over the $30 million taken in the November breach.

HTX Exchange, formerly known as Huobi, ranks among the top 20 crypto exchanges with an average trading volume of $1.6 billion in the past 24 hours, as reported by CoinMarketCap.

However, the recent outflow highlights the growing sensitivity of digital-asset investors to security-related issues, especially in the aftermath of high-profile exchange collapses like that of the FTX platform last year.