HTX (formerly Huobi Global) has successfully recovered $8 million worth of cryptocurrencies that were stolen in a hack that occurred in late September 2023.
Initially, the hack raised serious concern within the cryptocurrency community, as the hacker managed to get away with 5000ETH from one of HTX’s digital wallets.
However, the cryptocurrency exchange acted swiftly in response to the breach. It offered a 5% bounty amounting to approximately $400,000, with the promise not to pursue legal action if 95% of the stolen assets were returned before the stipulated deadline of October 2, 2023.
Remarkably, HTX’s efforts bore fruit as they were able to identify and engage in negotiations with the hacker, ultimately leading to the successful recovery of the stolen funds. In an unusual twist, the exchange chose to express gratitude to the hacker and offered a reward of 250ETH as a token of appreciation for returning the stolen assets.
We have confirmed that the hacker has fully returned all funds, as promised, and we have also paid the hack a white hat bonus of 250 ETH. The hacker made the right choice. We would like to express our gratitude to everyone in the industry for their help! https://t.co/SwY49A25h2
— H.E. Justin Sun 孙宇晨 (@justinsuntron) October 7, 2023
HTX’s positive outcome comes at a pivotal moment when the cryptocurrency industry grapples with an alarming surge in security breaches and cyberattacks, especially during the third quarter of 2023.
According to a report by Immunefi, a blockchain security company, there has been a significant increase in reported hacks targeting crypto and Web3 projects and firms compared to the previous year. So far, 76 incidents have been recorded.
These hacks have resulted in substantial financial losses, culminating in approximately $332 million in losses in September 2023 alone.
Noteworthy breaches during this period include the Mixin Network Attack, which incurred a $200 million loss due to a security breach involving its cloud service provider, and an attack on the CoinEX cryptocurrency exchange that led to $53.1 million in losses from its hot wallets.
Some stakeholders have suggested HTX’s unconventional approach may set a precedent and encourage hackers to willingly return stolen funds in exchange for a reward rather than facing potential legal repercussions.
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