Justin Sun’s HTX crypto exchange sees $258M outflow post-hack

• HTX experiences outflow post-hack.
• The outflow occurred between November 25 and December 10.
• HTX clients are disquieted after the November security incident.

The HTX exchange, formerly known as Huobi and affiliated with Chinese crypto mogul Justin Sun, has seen a massive $258 million net outflow since resuming operations after falling victim to a significant hack in November.

Data from DefiLlama reveals that this outflow occurred between November 25 and December 10, indicating that the security incident unsettled some clients.

HTX lost $30 million worth of crypto tokens during the breach and temporarily suspended withdrawals and deposits. Despite assurances of investigations and full compensation for hot wallet losses, concerns linger as the community closely monitors the aftermath of the hack.

Justin Sun’s association and hacks raise alarms

Justin Sun, linked to HTX, also has ties to Poloniex and Heco Bridge, both of which suffered hacks in November, resulting in approximately $200 million in crypto theft with $86 million being drained from the Heco Bridge alone. This series of security breaches intensifies suspicions within the cryptocurrency community regarding an exit scam.

The TRX token, a significant asset at HTX launched by Sun, is under scrutiny due to fraud allegations. The Securities and Exchange Commission (SEC) accused Sun and his firms of market manipulation earlier this year, adding another layer of complexity to the situation.

Digital asset investors are on high alert as HTX, with an average daily trading volume of $1.6 billion, navigates the aftermath of the hacks. The composition of HTX’s reserves, dominated by Bitcoin and TRX, raises questions about the security and integrity of these platforms.

Security firm BlockSec reports that while HTX recovered $8 million stolen in September, the hackers still control the $30 million taken in the recent breach despite a 5% bounty offered by the exchange. The cryptocurrency community remains vigilant as developments unfold, emphasizing the need for robust security measures and transparency in the ever-evolving landscape of digital assets.