HTX Exchange Faces $258 Million Net Outflows Amidst Ongoing Cybersecurity Challenges

In the wake of four major cyber attacks within the last two months, HTX exchange, associated with Tron founder Justin Sun, encounters a substantial net outflow of $258 million.

Persistent Cybersecurity Challenges

Following a $30 million loss due to a security breach on November 22, HTX, formerly known as Huobi, has struggled to regain investor trust. DefiLlama data reveals a significant net outflow of $258 million between the resumption of operations on November 25 and December 10.

Reserve Composition Insights

HTX, currently the 16th largest global crypto exchange by trading volumes, boasts an average trading volume of $1.6 billion in the last 24 hours. Insights from DefiLlama further highlight the diversified composition of HTX's reserves, with Bitcoin constituting 33%, TRX token (Tron blockchain) at 32%, HT (native exchange coin) at 14%, and stUSDT token holding 12%.

Series of Cyber Attacks

Entities linked to Justin Sun, including HTX, Poloniex crypto exchange, and HECO bridge, have suffered four cyber attacks in the last two months. Notably, the initial breach occurred shortly after HTX rebranded, resulting in an $8 million loss. The largest exploit transpired at Poloniex on November 10, causing a $100 million loss, and another breach occurred on November 22 at the HECO Chain bridge, diverting $86.6 million to suspicious addresses.

Heightened Vulnerability in the Cryptocurrency Ecosystem

The repeated security breaches in November, totaling $363 million in losses, emphasize the heightened vulnerability of Sun-linked entities and the broader cryptocurrency ecosystem to cyber threats. These incidents have raised concerns about the overall security infrastructure within the crypto space.

As HTX faces significant net outflows amidst ongoing cybersecurity challenges, the cryptocurrency community remains vigilant about the security of digital assets. The series of attacks on Sun-linked entities underscores the importance of robust security measures in the evolving landscape of digital asset trading.