Justin Sun’s HTX Exchange Sees $250 Million Outflow, Another Exchange Collapse?

Tron founder Justin Sun has been having a hard time while dealing with troubles at his own crypto exchange HTX. Ever since resuming operations after suffering a major hack, the HTX exchange saw a staggering $258 million in net outflows.

HTX Exchange Sees Massive Outflows

HTX, formerly recognized as Huobi, exhibited an average trading volume of $1.6 billion over the last 24 hours, positioning it among the top 20 cryptocurrency exchanges by this measure.

Data from DefiLlama indicates that $258 million departed from the exchange during the period between its restart on November 25 and December 10. This movement hints at a certain level of discomfort among clients following the security incident last month. HTX reported a loss of $30 million in crypto tokens due to the breach and temporarily halted withdrawals and deposits in the aftermath of the attack.

Sun is additionally associated with the Poloniex exchange and the HECO Bridge, an infrastructure established by HTX to facilitate transfers across blockchains. Both Poloniex and HECO experienced security breaches in November, resulting in the misappropriation of approximately $200 million in cryptocurrencies.

Following the November security incident involving HTX, Sun, in a communication on X, disclosed an ongoing investigation and asserted the exchange’s commitment to “fully compensate for HTX’s hot wallet losses.” It is noteworthy that hackers had previously siphoned off $8 million from the platform in September.

HTX is another major exchange facing major outflows over the last month. Binance, the world’s largest exchange also faced major outflows in billions of dollars, following the $4.3 billion settlement.

A Look At Exchange Reserves

Within HTX’s reserves, Bitcoin (BTC) represents the largest portion, approximately 33%, as reported by DefiLlama. The TRX token from the Tron blockchain, launched by Sun in 2017, accounts for around 32%. HTX’s native exchange coin, HT, makes up about 14%, followed by a Sun-associated token named stUSDT, constituting 12% of the reserves.

Notably, TRX has been at the center of fraud allegations against Sun in the United States. In a lawsuit filed in March, the Securities and Exchange Commission accused Sun and his entities of market manipulation to artificially inflate the trading activity of the token. Sun responded to the lawsuit via Twitter, stating that it “lacks merit.”

Security firm BlockSec reported that HTX successfully recovered the $8 million stolen in September. However, the $30 million taken in the recent security incident appears to remain under the control of the hackers, according to BlockSec

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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