Digital asset platform HTX recently experienced a significant setback, with a reported net outflow of $258 million following a hacking incident. The cryptocurrency exchange, linked to crypto mogul Justin Sun, lost $30 million in crypto tokens during the security breach, prompting concerns among customers.
The outflow occurred between the reopening of the platform on Nov. 25 and Dec. 10, according to data from DefiLlama, signaling potential unease among users after the security incident. HTX had temporarily suspended activity in response to the breach.
Despite the substantial outflow, an HTX spokesperson assured that this represents only a “small fraction of our total reserves,” emphasizing the platform’s stability and robustness. The company remains committed to providing a secure and seamless trading experience for its users.
HTX is associated with Justin Sun, who also has ties to the Poloniex platform and the HECO Bridge, designed by HTX for transfers between blockchains. Both Poloniex and HECO fell victim to hacks last month, resulting in the theft of approximately $200 million in crypto.
Following the November theft, Justin Sun pledged to “fully compensate for HTX’s hot wallet losses.” This commitment comes in the wake of a previous incident in September, where hackers stole $8 million from the platform.
The crypto sector has witnessed several high-profile hacks recently, including a $27 million theft from a Binance-connected wallet last month and a $200 million hack that led to the suspension of withdrawals and deposits on the Mixin network in September.
The challenges facing the crypto industry have prompted strong criticism from figures like Jamie Dimon, CEO of JPMorgan Chase, who reiterated his opposition to the sector before the Senate Banking Committee. Dimon has previously referred to digital currencies as “Ponzi schemes” and “frauds.”
Amidst the industry’s troubles, cryptocurrency companies have increased their lobbying efforts, spending $18.9 million on lobbying during the first three quarters of this year. Despite the collapse of FTX, a major lobbyist, the figures show a rise from $16.1 million in 2022, indicating the industry’s commitment to navigating regulatory challenges.
As HTX endeavors to recover from the recent security breach, the broader crypto landscape faces ongoing scrutiny and challenges, with stakeholders navigating the delicate balance between innovation and security.
