The digital currency world has witnessed another distressing event of security breaches. Two crypto platforms linked to entrepreneur Justin Sun were hacked, resulting in an estimated theft of $115 million. These hackings support the belief held by many regarding the vulnerability of digital currency exchanges and the need for enhanced security protocols within the crypto world.
The first targeted platform, HTX, formerly known as Huobi, revealed a theft of around $30 million worth of cryptocurrencies. At the same time, Heco Chain, a blockchain bridge associated with the Chinese-born Grenadian cryptocurrency entrepreneur, also encountered an attack. These bridges facilitate swift trading and movement of various digital currencies. However, they have often become vulnerable to malicious hacking activities.
Market analytics from CryptoQuant reported the theft of approximately $85.4 million in cryptocurrencies from Heco Chain, primarily in stablecoins like USDT and ether. Additionally, a significant amount of HTX’s native cryptocurrency, HBTC, was stolen, which resulted in a notable drop in its value on Thursday.
HTX promptly responded by suspending deposit and withdrawal services on both HTX and Heco Chain as a precautionary measure.
Through a post on X (Formerly Twitter), the exchange has sought to reassure users by stating that it is identifying the source of the attack and has swiftly implemented urgent measures to safeguard user assets.
The cybercriminals executed strategic actions, carefully transferring stolen assets, mainly focusing on converting them into the more readily traded ether asset. This strategic maneuver was intended to avoid the risk of potential freezing of stablecoins like USDT and USDC.
Tether and Circle, responsible for USDT and USDC, respectively, were not immediately available to provide comments, as reported by CNBC.
This incident reminds similar hacking crises in the history of cryptocurrency. Significant breaches such as the Poly Network Hack ($610 million), Coincheck Hack ($533 million), and the notorious Mt. Gox Hack ($470 million) are the examples that illustrate inherent weaknesses within the system. These events nearly suffice to underscore the critical necessity for the crypto industry to immediately strengthen its security measures.
The Poly Network hacking ended with the hacker returning the stolen funds, though in unusual circumstances. Coincheck experienced severe repercussions, compelling the company to compensate affected users. In contrast, Mt. Gox encountered protracted legal disputes as creditors awaited reimbursement through a Civil Rehabilitation Plan.
KuCoin (over $250 million in 2020) and Bitmart (about 200 million in late 2021) also experienced significant security breaches, further raising concerns about the safety of centralized exchanges. Likewise, the DAO and Wormhole hacks brought attention to vulnerabilities in smart contracts, leading to debated choices among their respective blockchain communities.
These events show how risky cryptocurrency can be. Security is crucial. Using strong security, doing detailed checks, and acting quickly are important to protect people’s money and build trust in digital money systems.
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