HTX Experiences Massive Withdrawals as Users Abandon Trust in the Exchange FRAUD


The HTX exchange’s $256 million withdrawal following a significant attack has increased security and trust issues in the cryptocurrency community.

During the time that the HTX exchange was back up and running following a major attack in November, a staggering $256 million was removed from the system. The exchange was once known as Huobi and was associated with Chinese crypto entrepreneur Justin Sun.

According to the statistics provided by Defilama, this exodus took place between November 25 and December 10. This proves that some customers were scared silly because of the security issue.

The hack caused HTX to momentarily halt payments and withdrawals after they lost $30 million worth of cryptocurrency tokens. Hot wallet losses will be completely compensated for, and HTX promised customers that they would examine the situation. Despite this, the community is nonetheless worried and watching the aftermath of the breach closely.

There have been rumors linking Justin Sun to HTX and other cryptocurrency exchanges. In November, cyberattacks hit Poloniex and Heco Bridge, stealing almost $200 million in crypto. Heco Bridge lost $86 million of that total. Crypto enthusiasts are starting to lose faith in the industry as a whole due to this string of security vulnerabilities. They are concerned that it may be an exit scam.

There is suspicion of fraud around Sun’s TRX cryptocurrency. The issue became much more complicated earlier this year when Sun and his enterprises were accused of market manipulation by the Securities and Exchange Commission (SEC).

As HTX, which deals with an average daily trading volume of $1.6 billion, deals with the fallout from the hacking, digital asset investors are on high alert. Since it was found out that the majority of HTX’s reserves are Bitcoin and TRX, many are questioning its security and integrity.

The $30 million stolen in the most recent breach is still in the hands of the hackers, according to security company BlockSec, even though HTX offered a 5% prize in September and recovered $8 million of that amount. The cryptocurrency community is closely watching the unfolding events, highlighting the need for strong security measures and transparency in the dynamic world of digital assets.

Also Read: Investors deceived by an Ontario “crypto king” lead to the reversal of a mansion sale

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