HTX hack: hacker offered 5% as a white hat incentive

• HTX cryptocurrency exchange was formerly Huobi.
• The hacker made away with ETH worth around $7.9 million.
• HTX’s native token experienced a slight decline after the hack.

In a recent security breach, cryptocurrency exchange HTX (formerly Huobi) fell victim to a hacker, resulting in the loss of $7.9 million in Ether (ETH) as covered in our previous news.

The incident, which occurred on a Sunday, was promptly identified, and the exchange’s advisor, Justin Sun, announced that HTX had taken immediate measures to cover the losses and ensure the safety of user funds.

HTX’s vigilant monitoring system detected the hack as soon as it transpired. This quick response enabled the exchange to secure all user assets and address the issue without delay, restoring normal trading operations.

HTX @HTX_Global has suffered a loss of 5,000 #Eth ($8 million USD) due to a hacker attack. HTX has fully covered the losses incurred from the attack and has successfully resolved all related issues. All user assets are #SAFU and the platform is operating completely normally.

— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 25, 2023

Hacker offered a white hat incentive

To recover the stolen funds and encourage the hacker to act as a “white hat” (an ethical hacker who helps improve security), HTX took a proactive approach. The exchange offered the hacker a unique opportunity: a 5% “white hat bonus,” amounting to nearly $400,000, to return the pilfered assets. This offer was, however, presented with a seven-day deadline for compliance.

In an additional show of goodwill, HTX went a step further, extending an invitation to the hacker to join the exchange as a security white hat advisor. This dual offer demonstrated HTX’s commitment to recovering the funds and enhancing its security measures.

Putting the hack in perspective

While the $7.9 million loss may appear substantial, it represents only a fraction of the vast wealth entrusted to HTX. The exchange safeguards approximately $3 billion in assets for its users, making the stolen amount equivalent to just two weeks’ worth of revenue for the HTX platform.

Despite the security incident, HTX’s native token, HT, continues to trade, with a current value of $2.43. It’s worth noting that the token experienced a slight decline of 1.24% after the hack, but has since stabilized.