Crypto investors have been redirecting their assets away from the crypto exchange rebranded as HTX after a major security breach last Nov. 22. This exploit prompted the exchange to temporarily halt its services and endure a staggering $30 million loss.

Cointelegraph, citing data by DefiLlama, reported that between Nov. 25 and Dec. 10, HTX witnessed net outflows totaling $258 million—reflecting an alarming decrease in investor confidence.

Unprecedented Outflows Put HTX at Risk

Monitoring platform DefiLlama's data shows that HTX, formerly known as Huobi, the 16th largest crypto exchange by daily trading volume, experienced a notable decline due to the security breach. Interestingly, HTX's reserves consist of approximately 32.3% Bitcoin (BTC), the pioneering cryptocurrency, and 31.8% Tron (TRX), the native currency of the Tron network conceptualized by Sun in 2017.

Recent market data from CoinMarketCap reveals that HTX recorded a daily trading volume of $1.6 billion in the last 24 hours. This impressive figure underscores the exchange's significant presence in the cryptocurrency market. Despite the ongoing challenges HTX faces, including the security breach, resumption of services, and subsequent outflows, the exchange continues to serve as a vital trading platform for crypto enthusiasts worldwide.

Promises of Compensation and Ongoing Investigation

Sun, the brain behind HTX, has promised total compensation for the losses incurred in the hot wallet to restore trust and reassure affected users, as per Coincu. Additionally, Sun has vowed to initiate a thorough investigation into the security breach. Details surrounding the probe remain undisclosed, but the intention is clear—to hold the culprits accountable and uncover any weaknesses within the HTX infrastructure.

Unfortunately, this security breach is not an isolated incident for HTX and other entities affiliated with Sun. Over the past two months, HTX, alongside Poloniex, another crypto exchange, and the HTX Eco Chain (HECO) bridge, have collectively endured four hacking incidents. These breaches underscore the vulnerability companies face within the crypto industry, shedding light on the need for robust security measures and proactive risk management.

Less than two weeks after HTX rebranded itself, the exchange suffered a significant hack on Sept. 24, 2023. The attacker's identity remains unknown, but their actions resulted in the theft of approximately $8 million worth of cryptocurrencies. The most substantial exploit also targeted Poloniex, resulting in a staggering $100 million loss. This breach, allegedly stemming from a compromised private key, exposed the vulnerability of even the most established exchanges.

On Nov. 22, the HECO Chain bridge, a crucial component for transferring assets between HTX and other blockchain networks, was infiltrated by hackers who illicitly transferred at least $86.6 million to suspicious addresses, wreaking havoc within the crypto ecosystem. Furthermore, November witnessed an alarming surge in crypto theft, with hackers siphoning off $363 million in ill-gotten digital assets.

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