Image courtesy of Justin Sun’s Twitter.
- HTX Global faces an $8 million hack, offers rewards, and sets up SAFU funds for future security.
- Justin Sun responds swiftly, assures user asset security, and engages Binance for investigation.
In response to a 5,000 ETH, valued at $8 million Ethereum (ETH) breach on HTX Global (previously known as Huobi), the cryptocurrency exchange has introduced a series of initiatives to address the situation and reinforce security.
On September 25, 2023, HTX Global, a major player in the cryptocurrency exchange sphere, reported a substantial security breach. This incident sent shockwaves throughout the cryptocurrency community, raising legitimate concerns about the safety of digital assets on the platform.
HTX Global’s advisor, Justin Sun, responded promptly to the security breach. Sun reassured the community that the platform consistently prioritizes the security of user assets. He announced the organization of a Twitter Space event on September 26, 2023, to openly discuss the exchange’s security protocols.
HTX @HTX_Global always prioritizes the security of user assets. I will have an English and Chinese Twitter Space, as well as an HTX live stream at 8pm SGT today 09/26/2023 to discuss exchange security.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 26, 2023
SAFU Fund for Enhanced Preparedness
To bolster HTX Global’s readiness to handle comparable future scenarios, Justin Sun unveiled a Secure Asset Fund for Users (SAFU). This fund will act as a financial buffer to cover losses from potential security incidents. Sun underscored the reliability of the exchange’s multi-backup and multi-signature cold wallet system, assuring users of 100 percent security.
We have established the SAFU fund to be prepared at all times for losses resulting from platform security issues. Additionally, we have implemented real-time monitoring mechanisms to prevent such losses.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 26, 2023
Despite the offers extended by HTX Global and Justin Sun, the individuals responsible for the breach have yet to acknowledge these communications. While Sun keeps his offer of a 5 percent reward from the stolen funds open, he has set a strict one-week deadline for the return of the assets. If the hackers fail to adhere to this deadline, HTX Global has indicated its intention to pursue legal recourse.
Web3 security firm Cyvers provided an account of the breach, stating that it occurred on September 24. Although this represents a substantial loss, Justin Sun stressed that it is merely a fraction of the platform’s assets. He confirmed that HTX Global is operating normally after successfully resolving the issues that led to the breach.
To recover the stolen assets, HTX Global extended an offer to the hacker. This “white hat bonus” amounts to roughly $393,000 or 5 percent of the stolen funds and is contingent upon the hacker returning the assets by October 2. The platform also claims to have identified the hacker’s identity and stands ready to initiate legal proceedings if the funds are not returned within the specified timeframe.
Involvement of Binance
Changpeng Zhao (CZ), the leader of the world’s largest cryptocurrency exchange, Binance, offered assistance in investigating the HTX Global hack. CZ promptly assigned Binance’s security team to assist in tracking the stolen funds. Despite acknowledging the incident, Zhao emphasized that the losses incurred by HTX Global are relatively small compared to the total assets held by its users.
A week after you rename your exchange after FTX… 😂
Jokes aside, our security team will help in tracking hacker funds in all cases where we can. https://t.co/5BjoG6IGA8
— CZ 🔶 Binance (@cz_binance) September 25, 2023
HTX Global has taken proactive steps to enhance its security measures. The exchange has introduced real-time monitoring mechanisms to mitigate future losses from security vulnerabilities. While Justin Sun has denied having a substantial stake in HTX Global, he has committed to hosting livestreams in both English and Chinese to discuss the exchange’s security protocols.
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