In a significant event, the HECO chain bridge, a creation of HTX Global exchange, has been compromised due to a substantial security lapse. This has led to an unauthorized transaction of more than $86 million. The on-chain security entity, Cyvers Alerts, detected this fund movement, suggesting a possible vulnerability in the HECO chain.
🚨Code Red!🚨 (Ongoing)Our AI powered system has detected multiple suspicious transactions from @HECO_Chain bridge
Suspicious address has received around $85M. Suspicious address: https://t.co/JlMClIM7hg
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) November 22, 2023
Cyvers Alerts has reported that dubious addresses have received more than $85 million from the HECO chain bridge, suggesting a significant security breach. The HECO Bridge, which facilitates fund transfers between Ethereum and the Heco Chain, appears to have been exploited. Igor Igamberdiev, the Head of Research at Wintermute, estimates the financial impact of the breach to be around $86.6 million.
Blockchain analysts from PeckShield speculate the occurrence of an exploit or rug pull, given the rapid transfer of the stolen funds to decentralized exchanges and their subsequent conversion into different tokens. This incident aligns with the recent pattern of security vulnerabilities observed in blockchain projects associated with Justin Sun.
HTX Global Confirms Cyberattack on Its Heco Cross-Chain Bridge
Justin Sun, the founder of Tron and an advisor to the exchange, has confirmed that the exchange and the Heco cross-chain bridge have been targeted by cybercriminals. About the cyberattack, which seems to have impacted the hot wallets of HTX, Sun assured that HTX will fully cover the losses incurred. For a brief period, HTX had put a hold on all deposits and withdrawals.
HTX and Heco Cross-Chain Bridge Undergo Hacker Attack. HTX Will Fully Compensate for HTX's hot wallet Losses. Deposits and Withdrawals Temporarily Suspended. All Funds in HTX Are Secure, and the Community Can Rest Assured. We are investigating the specific reasons for the hacker…
— H.E. Justin Sun 孙宇晨 (@justinsuntron) November 22, 2023
Sun reassured that all funds within HTX remain secure. The scope of the damage caused by the attack remains unclear. Following the announcement of the news, there was no significant depreciation in the value of the HT token.
This event is a sequel to a less severe exploit of HTX in October, where cybercriminals managed to abscond with 500 ether from the exchange, amounting to a loss of $8 million. The exchange fully compensated for the losses in the days succeeding the incident.