Tracking Stolen Huobi HTX Funds, Changpeng Zhao Offers Help

Changpeng Zhao

KANALCOIN NEWS – HTX proactively offered 5% or approximately $400,000 of the drained funds as a white hat bonus. The goal is to minimize losses due to theft of funds.

It is worth noting that crypto exchange HTX (formerly Huobi) reported a hack that resulted in losses of $8 million. Hours later, Binance CEO Changpeng Zhao offered the exchange’s security team assistance in investigating the attack.

The key to tracking and retrieving stolen cryptocurrency is timely intervention. Because it is certain that hackers try to hide their tracks using mixers or converting loot into privacy tokens. On September 24, blockchain analysis platform Cyvers identified a hack that drained 5,000 Ether from one of HTX’s hot wallets.

HTX proactively offered 5% of the drained funds as a “white hat bonus”, which amounts to almost $400,000 in Chinese. Then give hackers 7 days to comply.

On a lighter note, Changpeng Zhao joked about the newly rebranded HTX’s similarity to Sam Bankman-Fried’s famed crypto exchange, FTX. However, the loss of funds on both exchanges is incomparable, considering that HTX was hacked and FTX is suspected to be a fraud.

Sun emphasized that HTX will bear all losses for its users. This was in response to a tweet from Tron founder Justin Sun, who also serves as an advisor to HTX. Where Changpeng Zhao created a Binance security team to track stolen funds.

“$8 million represents a relatively small amount compared to the $3 billion in assets held by our users. It also only generates two weeks of revenue for the HTX platform.”

To prevent such losses, HTX implements a real-time monitoring mechanism. Sun committed to doing several live broadcasts to discuss the security of the exchange although he also denied owning a large stake in HTX. This is explained in both English and Mandarin.

Binance did not immediately respond to Cointelegraph’s request for comment on the ongoing HTX hack investigation. Decentralized peer-to-peer network Mixin Network lost nearly $200 million in a hack that involved compromising the database of a third-party cloud service provider. This happened about a day before the HTX hack.

Good news has come. An independent investigation conducted from Web3 SaaS analytics platform 0xScope revealed the hacker’s historical ties to Mixin Network. In 2022, the address linked to the hacker received 5 ETH from Mixin and then deposited it to Binance.

As a result, deposits and withdrawals on the Mixin Network will restart after confirming the vulnerability and fixing it. Meanwhile, plans for recovering lost assets for users were not immediately announced.


Redaksi Media
Author: Redaksi Media

Cryptocurrency Media

Notify of
Inline Feedbacks
View all comments