HTX global advisor, Justin Sun, announced the creation of a Secure Asset Fund for Users (SAFU) in response to the $7.9 million exploit of its hot wallet on September 24. This move highlights the platform’s commitment to security measures following the compromise.
In a post on X (formerly known as Twitter) on September 26, Sun disclosed that the fund would address losses resulting from security issues on the platform. He also mentioned the implementation of a real-time monitoring mechanism to prevent future losses.
On September 25, Sun confirmed the breach, which led to a loss of Ethereum (ETH) valued at $7.9 million. As an incentive for the hacker to return the stolen funds, HTX offered a 5% reward ($400,000) and even proposed hiring the hacker as a security white hat advisor if the funds were returned.
We have established the SAFU fund to be prepared at all times for losses resulting from platform security issues. Additionally, we have implemented real-time monitoring mechanisms to prevent such losses.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 26, 2023
Sun did not provide additional information about the fund. HTX has yet to respond to CryptoSlate’s request for additional commentary on the fund’s composition as of press time.
SAFU serves as a financial safety net earmarked to reimburse investors in the unfortunate event of asset losses resulting from hacks or other unforeseen incidents on cryptocurrency exchanges, which lead to the loss of user-owned assets.
Sun further reiterated HTX’s security measures in the post on the social media platform X. He stated that the platform “always prioritizes the security of user assets.
“Our multi-backup, multi-signature cold wallet system ensures 100% security,” Sun said. “Security is an ongoing commitment, and we will continually update and iterate on security measures to ensure that our users’ assets remain the safest in the industry.”
Data from DeFillama shows that HTX holds about $2.77 billion worth of digital assets, including Tron (TRX), Bitcoin (BTC), Ethereum, and others.
CZ Investigates Huobi HTX Stolen Funds
Hours after the crypto exchange HTX (rebranded from Huobi) reported a hack that resulted in a loss of $8 million, Binance CEO Changpeng “CZ” Zhao offered the help of the exchange’s security team in investigating the attack.
This was confirmed by Justin Sun. He also stated that the exchange has fully covered the losses incurred from the attack, and resolved all related issues. pic.twitter.com/Y0Ah1TxHmC
— CryptoTvplus (@Cryptotvplus) September 25, 2023
Hackers often attempt to hide their tracks using mixers or converting the loot to privacy tokens, so timely intervention is key to tracking down and retrieving stolen cryptocurrencies.
On a lighter note, CZ joked about the resemblance of the newly rebranded HTX with Sam Bankman-Fried’s infamous crypto exchange, FTX. However, the loss of funds in both exchanges is incomparable, given that HTX was hacked and FTX was an alleged scam.