Huobi Global’s crypto exchange, HTX, recently made headlines when a hacker breached its security late in September, running away with a hefty $8 million in digital assets. But luck, and perhaps a bit of detective work, smiled on HTX when the perpetrator returned all the stolen funds. As a token of appreciation, HTX handed the fait accompli culprit a 250 Ether prize.
Justin Sun, an investor with HTX, emphasized the firm’s commitment towards bolstering blockchain security, recognizing the arduous task this, no doubt, is. A single vulnerability could lead to significant asset loss as HTX experienced with this white hat scenario. The anonymous hacker drained 5,000 ETH from one of their hot wallets. A quick footed HTX made contact and identified the offender, managing to recover the stolen assets via a negotiation that included the intriguing sweetener: a 5% bounty and no legal repercussions.
When we cast our gaze over the crypto world of the third quarter of 2023, HTX’s security breach barely counts as a proverbial drop in the ocean. Immunefi, a blockchain security platform, chalked up 76 hacks on crypto and Web3 enterprises, revealing a startling rise compared with 30 reported hacks in the same timeline last year. In total, about $332 million evaporated into fin air due to an assortment of breaches and scams throughout September.
One significant event was when the Mixin Network felt the sting of a cyber attack, losing a sizeable $200 million due to the breach of its cloud service provider. Another major incident was when CoinEx, a crypto exchange, suspected an attack after a sizeable outflow from four of its hot wallets led to losses over $53.1 million.
Adding to the list of victims was Stars Arena, a social site integrated with Avalanche’s Contract Chain, which also suffered a significant security compromise. A frantic tweet from the official Stars Arena Twitter account confirmed that the platform’s smart contract had been targeted. As a safety measure, the team implored users to keep their digital change in their pockets while they probed the issue.
Though HTX’s story had a surprisingly happy end, the chronic surge in crypto-related heists is a potent reminder that, despite the attractive upside of decentralisation and blockchain technology, its Achilles’ heel remains the challenge of impenetrable security. Will Q4 change the trend? Only time will tell.
Source: Cryptonews
