HTX Exchange: Struggle continues despite reopening
Tron founder Justin Sun has faced ongoing difficulties with the cryptocurrency exchange. cooperative. Despite the exchange’s attempts to recover from a serious hack, HTX has suffered significant net outflows amounting to $258 million over the past two weeks.
Massive leaks and reopening issues
Previously known as Huobi, HTX has established itself as one of the top 20 cryptocurrency exchanges, with an average trading volume of $1.6 billion in the last 24 hours. However, the exchange experienced a net outflow of $258 million between November 25 and December 10 after being reactivated following a major security breach, according to data from DefiLlama.
The exchange suffered a loss of $30 million in cryptocurrency tokens due to the breach, which temporarily halted withdrawals and deposits. These losses were further exacerbated by Sun’s relationships with Poloniex and HECO Bridge. Both experienced security breaches in November, resulting in a total loss of $200 million in cryptocurrency.
Issues under ongoing investigation
Justin Sun spoke to X about the ongoing investigation following the November security incident, highlighting HTX’s commitment to fully compensate for hot wallet losses. However, this is not HTX’s first security breach. Hackers previously stole $8 million from the platform in September, indicating ongoing vulnerabilities.
Forex reserves and TRX suspicions
DefiLlama’s insights into HTX holdings show that Bitcoin (BTC) makes up about 33%, TRX tokens make up 32%, native HT coins make up 14%, and a Sun-linked token called stUSDT makes up 12%. TRX, which is linked to Tron and launched by Sun in 2017, has been accused of fraud by the U.S. Securities and Exchange Commission (SEC) for alleged market manipulation. However, Mr. Sun refuted these criticisms on Twitter, claiming that the lawsuit “lacks merit.”
Security Issues and Recovery Efforts
Security firm BlockSec reported in September that it had successfully recovered $8 million stolen by HTX. However, despite these efforts, $30 million in losses from a recent security breach appears to remain in the hands of hackers, indicating ongoing security issues at the exchange.