In the fast-paced world of cryptocurrency, timely intervention is crucial when a hack occurs. Recently, HTX (formerly known as Huobi) reported a hack resulting in a loss of $8 million.
To combat such cyberattacks, Binance CEO Changpeng “CZ” Zhao stepped in to offer the help of Binance’s security team in investigating the incident.
The swiftness of addressing crypto hacks is essential, as hackers often try to cover their tracks by using mixers or converting stolen funds into private tokens.
On September 24, blockchain analytics platform Cyvers detected a hack that drained 5,000 Ether (ETH) from one of HTX’s hot wallets.
HTX took a proactive approach by offering 5% of the stolen funds as a “white-hat bonus,” amounting to nearly $400,000, as an incentive for the hacker to return the funds.
However, HTX provided the hacker with a seven-day window to comply with the offer. The communication from HTX was in Mandarin (Chinese).
On a lighter note, CZ playfully commented on the resemblance between the newly rebranded HTX and Sam Bankman-Fried’s crypto exchange, FTX.
However, it’s important to note that the nature of the fund loss in the two exchanges is vastly different. HTX experienced a hack, while FTX was associated with alleged fraudulent activity.
In response to a tweet from Tron founder Justin Sun, who also serves as an advisor to HTX, CZ took the initiative to assign Binance’s security team to assist in tracking down the stolen funds.
Sun confirmed that HTX would cover all losses for its users. He explained that the $8 million loss, while significant, represents a relatively small portion compared to the $3 billion worth of assets held by HTX users. Furthermore, it equates to just two weeks’ revenue for the HTX platform.