Heco Chain, HTX Hit by $100M Hack, Justin Sun Says Exchange Will Cover All Losses

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Trent Alan

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Trent Alan

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Trent has a background and education in journalism and communications, with two decades of experience editing and writing on a diverse array of topics. In recent years, however, he has shifted his...

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November 22, 2023 11:19 EST

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Cryptocurrency exchange HTX and blockchain protocol Heco Chain were exploited on Wednesday in a hack totaling $97 million worth of digital tokens, according to Justin Sun, one of the investors in the exchange.

Hackers Pull Off $100M Heist From Heco Chain, HTX

Sun confirmed in an X post

that HTX will fully reimburse users for any losses originating from the platform. Deposits and withdrawals have been temporarily suspended on HTX while the remaining funds are secured.

“We are investigating the specific reasons for the hacker attack. Once we complete the investigation and identify the cause, we will resume services,” Sun said.

HTX and Heco Cross-Chain Bridge Undergo Hacker Attack. HTX Will Fully Compensate for HTX's hot wallet Losses. Deposits and Withdrawals Temporarily Suspended. All Funds in HTX Are Secure, and the Community Can Rest Assured. We are investigating the specific reasons for the hacker…

— H.E. Justin Sun 孙宇晨 (@justinsuntron) November 22, 2023

Justin Sun Vows to Cover All Losses After Crypto Hack

Blockchain security company Cyver had flagged suspicious transfers amounting to $85 million earlier today. According to a message Cyver sent to CoinDesk, the attack was likely due to a leak of private keys. This would have allowed hackers to access the bridge between Heco Chain and Ethereum, enabling the transfer of tokens between the two.

Heco Chain was established by HTX, which has remained one of its maintainers. A spokesperson for HTX said that HTX and Heco Chain operate independently.

This incident comes after HTX suffered a smaller exploit in October, when hackers stole 500 ether worth around $8 million from the exchange. HTX covered all losses in the days after that hack.

While HTX has pledged to reimburse customers, major hacks can deal lasting damage to platforms through loss of confidence and strained finances. Heco Chain and HTX will need to identify and fix the security vulnerabilities to regain user trust. For now, the companies must focus on supporting affected customers as investigations into the hack continue.