Following the Hack, HTX Witnesses Outflows of Over $250 Million

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Cybercriminals strike again against platforms, and the exchange HTX (formerly known as Huobi) was once again the focus of a series of attacks that raised concerns in the digital financial community. Following a hack in November, where the platform lost around $30 million in crypto assets, investors opted to withdraw their funds massively, putting an end to trust in the exchange.

Since resuming operations on November 25, HTX has experienced capital outflows amounting to considerable figures, reaching $258 million according to DefiLlama data. This abrupt outflow of funds reflects users’ distrust, who fear for the security and integrity of their investments in the exchange. The investor community is not only affected by current events but also recalls with concern the previous hacks, especially the one that occurred just two weeks after HTX rebranded, resulting in losses close to $8 million.

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HTX and Justin Sun at the Center of the Storm

HTX’s connection with Chinese entrepreneur Justin Sun, known for his involvement in other entities like Poloniex and the HECO bridge, adds even more unease. These platforms also fell victim to attacks in November, accumulating losses around $200 million, with the HECO Bridge alone losing $86 million. The repetition of security incidents within Sun-linked companies raises suspicions in the community, even considering the possibility of a potential exit scheme.

The situation becomes even more complicated with the spotlight on the TRX token, launched by Sun. It not only faces scrutiny from the community in terms of security but is also under regulatory scrutiny. The SEC accused Sun and his companies of market manipulation, significantly complicating the future outlook for HTX and its operations.

Despite HTX’s promises to investigate incidents and compensate those affected, the investor community remains skeptical. The lack of transparency and doubts about the exchange’s ability to safeguard user funds have already created an atmosphere of uncertainty at a time when security in the cryptocurrency world is of utmost importance. The verdict of users regarding HTX remains to be seen, whether they decide to definitively leave the platform or trust the company to protect their funds.


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