HTX Sees Massive Withdrawals as Users Lose Trust in the Exchange

HTX Sees Massive Withdrawals as Users Lose Trust in the Exchange

FraudExchange

By Miles

11 Dec 2023 (7 months ago)

2 min read

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HTX exchange faces over $256 million withdrawal after a major hack, raising security and trust concerns in the crypto world.

A Massive $256 Million has been withdrawn from The HTX exchange, formerly known as Huobi and affiliated with Chinese crypto mogul Justin Sun,these large outflows happened just within the period in which the HTX resumed its operations after falling victim to a significant hack in November.

This outflow occurred between November 25 and December 10, as reported by data from Defilama. This shows that the security incident caused panic among some clients.

During the breach, HTX lost $30 million worth of crypto tokens, causing them to temporarily stop withdrawals and deposits. HTX assured its users that they would investigate the incident and fully compensate for hot wallet losses. Even with these, the community is still concerned and is keeping a close eye on what could play out after the hack.

Justin Sun linked to HTX, is also reported to be linked to Poloniex and Heco Bridge, both of which suffered hacks in November, resulting in approximately $200 million in crypto theft with $86 million being drained from the Heco Bridge alone. This series of security breaches is beginning to increase suspicions within the cryptocurrency community. They think it could be an exit scam.

The TRX token, launched by Sun, is under scrutiny for fraud. Earlier this year, The Securities and Exchange Commission (SEC) accused Sun and his firms of market manipulation, making the situation more complex

Digital asset investors are on high alert as HTX, with an average daily trading volume of $1.6 billion, navigates the aftermath of the hacks. The security and integrity of HTX are being questioned as it was discovered that  HTX’s reserve is mostly Bitcoin and TRX.

Security firm BlockSec reports that while HTX recovered $8 million from the stolen funds in September, the hackers still control the $30 million taken in the recent breach despite HTX offering a 5% bounty. The cryptocurrency community remains vigilant as developments unfold, emphasizing the need for robust security measures and transparency in the ever-evolving landscape of digital assets.

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