Key takeaways:
- The Heco Bridge and HTX exchange, affiliated with Justin Sun, have suffered a crypto attack resulting in losses surpassing $100 million
- HECO Chain deposits and withdrawals paused for ongoing security breach investigation.
In a shocking turn of events, the HECO Chain ecosystem recently fell victim to a significant security breach, resulting in the unauthorized transfer of over $86.6 million in digital assets to suspicious addresses.
This alarming incident has spurred immediate action from Tron founder Justin Sun, who recently came under SEC’s scanner, taking responsibility by pledging full compensation for affected users and temporarily halting deposits and withdrawals pending a thorough investigation.
This attack comes shortly after successfully recovering the crypto assets that were stolen by a hacker in late September.
The security firm PeckShield shed light on the breach, revealing that the substantial sum was moved from the HECO Chain bridge to addresses that raised red flags.
Justin Sun swiftly addressed the situation, assuring the community that HTX would fully compensate users for any losses incurred during the hack. To aid in the investigation, the company temporarily suspended deposits and withdrawals, with services set to resume once the inquiry is complete.
PeckShield’s findings indicated that the bridge itself had been compromised, with the transaction initiated by the operator, hinting at a potential compromise within the operator’s system. This unsettling revelation raises questions about the security infrastructure supporting HECO Chain.
This unfortunate breach marks the second recent security incident linked to projects overseen by Justin Sun. According to blockchain security firm Cyvers Alerts, the estimated loss from this attack exceeds $100 million. Meir Dolev, Cyvers Alerts’ chief technological officer, expressed concern over multiple suspicious transactions on HTX_Global hot wallets and the HECO_Chain bridge, likely executed by the same entity.
Launched on December 21, 2020, HTX Eco Chain, or HECO, aimed to provide users with a cross-chain experience boasting lower gas fees. The project materialized through the merger of Tron and BitTorrent’s bridge ecosystems, orchestrated by Justin Sun in 2022.
Analytics firm LookOnChain detailed the extent of the hack in a subsequent tweet, revealing that a staggering $83.4 million worth of assets from the Heco Bridge had been stolen. This substantial loss encompassed a variety of cryptocurrencies, underscoring the severity of the situation.
Despite the gravity of the breach, HTX emphasizes that all funds within its ecosystem remain secure, offering reassurance to its user base. Justin Sun continues to communicate the ongoing efforts to pinpoint the specifics of the hacker attack. Once the investigation is complete and the cause identified, normal services are expected to resume.
As the HECO Chain ecosystem grapples with the aftermath of this security breach, the industry watches closely to see how Justin Sun and his team address the vulnerabilities exposed. The incident serves as a stark reminder of the persistent threats facing blockchain projects and the crucial need for robust security measures in safeguarding users’ digital assets.
