Justin Sun’s HTX Reports $98 Million Profit in Q3 2023, Forecasts Strong Performance for Q4
HTX, the crypto exchange formerly known as Huobi Global and owned by Chinese blockchain personality Justin Sun, has announced a profit of $98 million for the third quarter of 2023.
In a recent post on X (formerly Twitter), Sun claimed that HTX generated $202 million in revenues during the quarter, with expenses totaling $104 million.
Despite the challenging market conditions in the third quarter, including the impact of the United States Federal Reserve’s high interest rates, HTX managed to maintain its revenue growth rate, the crypto veteran said.
Sun also expressed optimism about the fourth quarter, citing a market recovery and projecting $190 million in revenue and $88 million in expenses for an estimated profit of $104 million.
Sun believes that the crypto bear market is nearing its end, anticipating a spring recovery in the market in Q4 2023 and Q1 2024.
He expressed confidence in the overall improvement of financial indicators during this period.
“The overall market recovered in the fourth quarter. We are optimistic about the fourth quarter. The revenue forecast is still relatively conservative.”
— H.E. Justin Sun 孙宇晨 (@justinsuntron) October 26, 2023
HTX Faces Operational Challenges
However, HTX has faced operational challenges in recent months.
During the Token2049 event in Singapore, Edward Chen, managing director of HTX Ventures, revealed that the exchange had reduced its staff count from 2,500 earlier in the year to 900 in response to falling revenues.
In January, HTX faced an employee revolt when salaries were cut and bonuses removed due to financial difficulties.
Furthermore, HTX experienced a security breach in late September that resulted in the loss of $8 million worth of crypto assets.
The breach involved the draining of 5,000 ETH from one of HTX’s hot wallets.
Following the hack, HTX promptly reached out to the hacker and claimed to have identified their identity.
The efforts to recover the stolen funds eventually turned out to be successful and the exchange regained the funds earlier this month.
HTX Targeted By UK Financial Watchdog
In another blow to HTX, the exchange has been added to the FCA’s warning list, which includes some crypto platforms categorized as “non-authorized firms” that citizens “should avoid.”
The FCA’s decision to add these exchanges stems from concerns about their operation without the necessary license or compliance with UK regulations, potentially putting customers at risk.
Consequently, they strongly advise against engaging with any firm on the warning list, as it may expose individuals to fraud or other financial losses.
Exchanges listed in this manner are prohibited from operating within the UK.
To be removed from the list, an exchange must either register with the FCA or obtain a temporary status permit allowing legal operations within the country.