HTX, the cryptocurrency exchange managed by Huobi Global, has effectively recovered the assets misappropriated by a cyber intruder during a security lapse in late September.
In acknowledgment of the return, HTX granted the hacker a bounty of 250 Ether.
In a recent update on X (previously known as Twitter), Justin Sun, an investor in Huobi Global and adviser to HTX, stated, “We can verify that the hacker has conscientiously returned the entire amount as assured. In recognition, we’ve rewarded the individual with a white hat bonus of 250 ETH.”
Sun further highlighted their unwavering dedication to bolstering blockchain safety and ensuring the security of user funds. He recognized the complexities inherent in this endeavor and expressed gratitude towards the continued backing of the HTX community and its users.
It was previously reported that HTX fell victim to a security compromise in the latter part of September, resulting in a substantial loss of crypto assets valued at $8 million.
The incident saw the extraction of 5,000 ETH from one of HTX’s active wallets.
In the aftermath of this security breach, HTX swiftly established communication with the perpetrator, asserting that they had managed to discern the hacker’s identity.
To expedite the restitution of the misappropriated funds, HTX floated a 5% bounty, which translated to an estimated $400,000. Furthermore, the exchange assured the hacker of refraining from initiating legal proceedings provided that a substantial 95% of the stolen assets were restored by the stipulated deadline of October 2.
Hacks Continue to Plague the Crypto Space
The situation with HTX is just one in a series of security breaches that have shaken the cryptocurrency sector in the third quarter of 2023.
As outlined by blockchain defense platform Immunefi, the number of attacks on cryptocurrency and Web3 projects surged to 76 in Q3 2023. This starkly contrasts the 30 hacks documented during the same timeframe the previous year.
The cumulative losses for September alone, stemming from various hacks, scams, and exploitative tactics, amounted to an alarming $332 million, setting an unprecedented monthly high for crypto-related breaches.
A particularly distressing event in this period was the cyber attack on Mixin Network on September 23. This decentralized protocol, headquartered in Hong Kong and designed for cross-chain transfers, faced a massive security compromise. It resulted in the exfiltration of a staggering $200 million, attributed to vulnerabilities in its cloud service provider.
On September 12, CoinEx, a cryptocurrency trading platform, fell prey to another significant breach. Following a substantial withdrawal from four of its active wallets, there was a suspected cyber-attack. The fallout from this incident resulted in a loss surpassing $53.1 million distributed across these wallets.
In a more recent occurrence, Stars Arena, a community platform operating on Avalanche’s Contract Chain, was compromised due to a notable security lapse.
Addressing the situation, Stars Arena’s official Twitter handle posted a message on a Saturday, confirming an attack on their platform’s smart contract.
In a bid to prevent further potential losses, the Stars Arena team promptly advised its user base to refrain from making any deposits while the matter was under thorough scrutiny.