HTX Loses $97 million in Server Hack Amid Rising Crypto Threats

• Attackers breach HTX servers, stealing $97 million.
• Company assures customer funds are secure and promises to cover losses.

Attackers stole $97 million from cryptocurrency exchange HTX through a sophisticated server breach. The incident was first reported by blockchain analytics firm Cyvers, and Justin Sun, an advisor to HTX, later confirmed the breach. Sun reassured users that all customer funds were unaffected and securely stored in cold wallets.

On November 22, 2023, CoinDesk reported that the breach targeted an operational account that HTX used for liquidity provisioning on a partner exchange. To initiate the theft, the attackers routed at least 1,220 Ether (ETH) through the cryptocurrency mixer Tornado Cash to obscure the asset's traceability. Subsequently, the attackers bridged additional stolen funds from the HECO Chain to Ethereum. Although HTX did not disclose the compromised account—a hot wallet for liquidity management—in its proof-of-reserves documentation, Cyvers tracked its activities by analyzing related blockchain transactions.

In response, HTX isolated the breached account and collaborated with cybersecurity experts for an in-depth investigation. The exchange also coordinated with its partner to block and recover the stolen assets. In addition, the company offered the hacker a 5% white hat bounty to enhance platform security. Justin Sun reaffirmed the exchange's commitment to absorb the loss using treasury reserves, ensuring user holdings remain unaffected. Notably, deposits and withdrawals were temporarily suspended.

This incident follows a similar security breach from three months prior, when Poloniex, another exchange linked to Justin Sun, suffered a $114 million loss in an attack linked by authorities to North Korea’s Lazarus Group. However, no evidence currently links the HTX attackers to any particular group or entity.