Key takeaways:
- Justin Sun led HTX faces a multimillion-dollar net outflow post-resuming operations following a major attack last month
- HTX observes a $258 million net outflow post-hack
Tron founder Justin Sun is facing a series of setbacks as troubles continue to plague his cryptocurrency exchange, HTX. Following a significant hack, the exchange resumed operations on November 25th, only to experience a staggering $258 million in net outflows by December 10th.
The persistent outflow of funds has sparked concerns about the platform’s security measures and eroded investor confidence.
Since resuming services, HTX founder Justin Sun assured affected users of full compensation for losses from the hot wallet breach. He also announced an ongoing investigation into the security breach.
Despite these reassurances, data from DefiLlama reveals a troubling trend of substantial net outflows, raising questions about the exchange’s stability.
A spokesperson for HTX downplayed the significance of the outflows, describing them as “a small fraction of our total reserves.” According to the spokesperson, this indicates the platform’s stability and robustness. HTX remains committed to providing a “secure and seamless” trading experience, despite the ongoing challenges.
As of December 8th, HTX’s reserves disclose a diverse composition. Bitcoin comprises approximately 33%, while the TRX token represents around 32%. The native exchange coin, HT, accounts for about 14%, and a Sun-backed token named stUSDT makes up 12% of the reserves.
Despite the turmoil, HTX emphasizes the strength of its reserves as a testament to the platform’s stability.
Amidst the turmoil, concerns about potential improprieties have surfaced. The frequency of hacking attacks on HTX and related entities, including the cryptocurrency exchange Poloniex and the HTX Eco Chain (HECO) bridge, over the past two months has fueled speculation.
With four separate incidents targeting these entities, questions arise about the overall security and integrity of operations connected to Justin Sun.
The ongoing challenges faced by Justin Sun’s HTX exchange underscore the fragility of the cryptocurrency landscape. As the platform grapples with security concerns and significant outflows, stakeholders are left questioning the long-term viability of HTX. Whether these incidents are isolated or part of a broader issue within the organization remains to be seen, but the crypto community watches closely as the situation unfolds.
