Home ยป HTX Crypto Platform Faces $258 Million Outflow Post-Hack

HTX Crypto Platform Faces $258 Million Outflow Post-Hack

Navigating Turbulence: HTX Outflow Reflects Broader Concerns Amidst Crypto Sector Challenges.

by Isaac lane
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Digital asset platform HTX experienced a significant net outflow of $258 million following a recent security breach. The funds departed the exchange between its reopening on Nov. 25 and Dec. 10, raising concerns about user confidence.

The outflow is believed to be a consequence of a security incident in which HTX lost $30 million in crypto tokens, leading to a temporary suspension of activities. Data from DefiLlama indicates a substantial withdrawal during this period.

HTX’s Response and Reassurance

An HTX spokesperson reassured users, stating the outflow represents “a small fraction of our total reserves,” emphasizing the platform’s stability. The company remains committed to providing a secure and seamless trading experience despite the challenges.

HTX is linked to crypto mogul Justin Sun, known for ties to the Poloniex platform and the HECO Bridge. Both Poloniex and HECO experienced hacks last month, totaling approximately $200 million in stolen crypto. Sun previously pledged full compensation for HTX’s hot wallet losses.

Industry-Wide Challenges and Recent Hacks

The HTX incident adds to a series of recent crypto sector hacks, including the theft of $27 million from a Binance-connected wallet and the $200 million hack that prompted Mixin to halt withdrawals and deposits. The broader challenges in the crypto space have drawn criticism from JPMorgan Chase CEO Jamie Dimon.

Jamie Dimon’s Stance on Crypto

Dimon, a vocal critic of the crypto sector, reiterated his opposition to digital currencies during a Senate Banking Committee hearing. He suggested closing down the sector, referring to digital currencies as “Ponzi schemes” and “frauds.”

The troubles in the crypto sector have led to a surge in industry lobbying. Digital asset companies spent $18.9 million on lobbying in the first three quarters of this year, surpassing the $16.1 million spent in 2022. Despite FTX’s collapse, the industry is on track for a record amount of lobbying this year.

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