According to Tron Founder, Justin Sun, a prominent crypto exchange, Huobi (now HTX) has been hacked, with a total of 500 ether (worth around $8 million) lost.
The incident which occurred on Sunday was identified immediately. And although Huobi (HTX) claims to have fully covered the losses, it brings to the fore the vulnerabilities of the crypto space which has suffered too many breaches in recent times.
How the Huobi (HTX) hack happened
According to a report by blockchain analytics firm, Cyvers, Huobi Global’s HTX crypto exchange was hacked on Sunday and a total of $7.9 million worth of crypto was drained in the attack.
Around 11 a.m. WAT on Sunday morning, the suspected Huobi hot wallet executed a transfer, sending 4,999 Ether, equivalent to approximately $7.9 million, to an address without any previous transaction history.
Huobi Global investor, Justin Sun confirmed the attack around 3 pm WAT on Monday, stating: “HTX @HTX_Global has suffered a loss of 5,000 #Eth ($8 million USD) due to a hacker attack.”
Sun claimed that user funds are safe and the exchange is now functioning normally. “HTX has fully covered the losses incurred from the attack and has successfully resolved all related issues,” he declared.
Some crypto community members have highlighted that the hack happened days after Huobi rebranded to HTX. Recall that less than two weeks ago, we reported in our weekly newsletter how Huobi rebranded to HTX, in a move that was widely believed to have been inspired by the collapsed FTX.
Changpeng Zhao, the CEO of Binance, joined the community in joking about the rebranding. He posted on X:
“A week after you rename your exchange after FTX… Jokes aside, our security team will help in tracking hacker funds in all cases where we can.”
Attacks in the crypto space recently
There have been various large hacking incidents targeting crypto platforms this year, many of which are reported to be caused by the notorious North Korean-affiliated Lazarus Group.
Per reports, the syndicate has garnered $40 million from the attacks over the course of the year. Earlier today, there were reports that hackers stole over $200 million from the blockchain platform, Mixin Network. The incident is considered to be the largest hack of 2023.
Read also: 3 platforms where content creators can earn crypto from live-streaming
The Lazarus Group is a North Korean state-sponsored hacking group known for its sophisticated attacks. The group has been linked to various cyberattacks and cybercriminal activities. Last year, Lazarus Group was tied to a number of high-profile cryptocurrency hacks, including the theft of $620 million from Axie Infinity bridge Ronin.
Two weeks ago, the FBI blamed the Lazarus Group for the $41 million hack of the crypto gambling site Stake. The attack was carried out through a spear-phishing campaign that targeted some of Stake’s employees. Around that same time, blockchain security firm SlowMist said the $55 million hack of crypto exchange CoinEx was carried out by the North Korean state-sponsored hackers.
As they continue to grow into a global threat, it is important to understand the operations of Lazarus Group, know their operational tactics and devise means to avoid falling prey.
Interestingly, what has been noticed about these attacks is that they involve social engineering and exploiting human error. In contrast to the expected pattern of hackers either gaining physical access to devices or brute forcing passwords, most hacks actually occur through phishing and social engineering.
In simpler terms, these attackers rely on human curiosity or greed to entice the victim. With how increasingly dangerous the trend is, we have come up with 3 simple guidelines to bolster the security of your digital assets substantially.
Read it here.
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