Huobi Global Loses $7.9 Million in Security Breach: Reported by Cyvers
In a startling turn of events, Huobi Global’s HTX crypto exchange fell victim to a cyberattack on September 24th, with a staggering $7.9 million worth of cryptocurrencies spirited away, as revealed in a report by blockchain analytics platform Cyvers.
The audacious attack saw a known Huobi hot wallet deliver a message in Chinese to the assailant. This message acknowledged the attacker’s identity and made an intriguing proposition. Huobi Global offered to allow the perpetrator to retain 5% of the pilfered funds as a “white-hat bonus,” but under one condition – the return of the remaining 95%.
At precisely 10:00 am UTC on September 24th, the suspected Huobi hot wallet, identified as 0x2Abc22eb9A09EbBE7b41737CCde147F586EfeB6A, executed a transfer of 4,999 Ether (ETH) tokens, valued at approximately $7.9 million, to an address devoid of any prior transaction history. The morning following the heist, a separate wallet associated with Huobi delivered a message in Chinese to the assailant. The translated message read:
“We have ascertained your true identity. Please return the funds to 0x18709E89BD403F470088aBDAcEbE86CC60dda12e. We will extend a 5% white hat bonus. This offer remains valid for 7 days and expires on October 2, 2023. Failure to return the funds by the deadline will necessitate judicial intervention.”
Cyvers, the whistleblower, reported the attack on September 25th. The wallet responsible for sending the message was identified as a Huobi hot wallet by the blockchain analytics platform Arkham Intelligence. Remarkably, this wallet was listed on a Huobi support page as officially belonging to the exchange.
🚨Red Code🚨Yesterday, our ML-powered system detected a suspicious transaction involving @HuobiGlobal and @HTX_Global. Despite our attempts to reach out, we received no response. An EOA received 5K $ETH $7.9M from @HuobiGlobal's hot wallet.
This audacious heist highlights the growing sophistication of cyberattacks in the crypto sphere. Furthermore, it highlights the intriguing interplay between hackers and cryptocurrency exchanges. Huobi Global’s unconventional offer of a “white-hat bonus” adds a layer of intrigue to this already bewildering tale.
It is important to note that cryptocurrencies remain highly volatile and susceptible to such security breaches. Investors and traders are urged to exercise utmost caution and vigilance when participating in this evolving digital landscape. As investigations unfold, the crypto community awaits further developments in this intriguing saga.
In an increasingly interconnected world, where digital assets are becoming ever more integral, the battle between security and fraud rages on, reminding us that in the realm of cryptocurrencies, the line between hero and villain can blur, much like the characters in a cryptic thriller.
