HTX Exchange Sees $258M Outflows Post-Recovery from Exploits

• This behavior suggests that customers are still feeling uneasy about the security issue.
• Hackers have targeted Sun-related projects multiple times recently.

Following its recovery from a devastating attack, the HTX exchange led by Tron Founder Justin Sun has seen unprecedented net outflows of $258 million. Trading volume of $1.6 billion per day placed HTX, previously known as Huobi, in the top 20 crypto exchanges according to this metric.

From November 25th to December 10th, when the exchange was back up according to DefiLlama data, $258 million left HTX.

Struggle Continues

This behavior suggests that customers are still feeling uneasy about the security issue that happened last month. After the hack, HTX briefly stopped payments and withdrawals and declared a $30 million loss in crypto.

Sun also has ties to the Poloniex exchange and the HECO Bridge, which is HTX’s infrastructure for cross-blockchain transactions. November saw security breaches at Poloniex and HECO, stealing almost $200 million worth of cryptocurrency.

Moreover, Sun announced a continuing review and the exchange’s intention to “fully compensate for HTX’s hot wallet losses” in a message on twitter after the November security issue concerning HTX. Notably, in September, hackers had already stolen $8 million from the exchange.

A preliminary investigation indicated that $86.6 million was taken from the HECO bridge, according to Igor Igamberdiev, director of research at Wintermute and PeckShield. The funds were immediately sent to decentralized exchanges for the purpose of exchanging them for further tokens.

Hackers have targeted Sun-related projects multiple times recently. The exchange Poloniex, which Sun acquired in 2018, was breached to the amount of $100 million on November 10th. According to security experts, private keys might have been compromised.

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