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After a Hack, $115 Million was Taken from Two Crypto Businesses Affiliated With Justin Sun

Two cryptocurrency platforms associated with digital entrepreneur Justin Sun were targeted in separate hacks, potentially resulting in an estimated $115 million in losses. The HTX digital currency exchange, formerly known as Huobi, reported around $30 million worth of cryptocurrencies being drained by hackers. The Heco Chain, a blockchain bridge connected to Justin Sun, was also attacked. A total of $85.4 million in cryptocurrency, primarily denominated in USDT and ether, was reportedly stolen from the Heco Chain, according to market analytics firm CryptoQuant.

Justin Sun, an investor in HTX and linked to the Heco Chain, confirmed the hacking incidents. Blockchain bridges, which enable the rapid exchange of various cryptocurrencies between different networks, have been susceptible to security breaches.

HTX is actively investigating the source of the attack and has implemented urgent measures to safeguard user assets. As a precautionary measure, the exchange temporarily suspended deposit and withdrawal services on both HTX and Heco Chain. HTX also assured users that it would fully compensate for any losses resulting from the hot wallet attack, where a hot wallet refers to an internet-connected cryptocurrency wallet.

Data from CryptoQuant revealed that approximately 11,100 ether tokens, equivalent to around $23 million, were moved from the HTX exchange in the past few hours. This movement is largely attributed to hackers stealing digital coins and some users attempting to withdraw funds from the exchange. Hackers are reportedly converting their stolen assets into more liquid ether assets, as stablecoins like USDT and USDC can be frozen.

The HTX hack follows another security breach at Poloniex, an exchange backed by Justin Sun, earlier this month. The Poloniex hack resulted in the theft of $100 million worth of cryptocurrencies. Both incidents underscore the persistent security challenges cryptocurrency exchanges and platforms face, prompting concerns within the industry about enhancing security measures to protect user funds.

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