Crypto Nightmare: Huobi’s Heco Bridge Faces Massive $87M Theft

HTX Exchange Faces $87M Loss in Ethereum Bridge Breach

The HTX exchange, formerly known as Huobi, experienced a security breach as its bridge connecting to Ethereum was exploited. It resulted in the loss of approximately $87 million in crypto assets. The breach involved large amounts of ether, tether (USDT), and wrapped bitcoin (HBTC) being transferred to an unused Ethereum wallet.

Security firms specializing in blockchain, like CertiK, Peckshield, and Cyvers, analyzed the questionable transactions. They have suggested that the bridge's private key was likely compromised. CertiK identified the Huobi HECO Bridge operator wallet as the source of the suspicious transactions, indicating a compromise of that wallet.

ERC-20 tokens were drained, converted to ether, and distributed to at least eight other wallets. HTX Global reported losses in two of its hot wallets. Board member Justin Sun confirmed the incident and pledged full compensation for the losses.

Justin Sun has suggested that his influence and control over the Huobi Eco Chain are not based upon owning a majority of its tokens or shares. Instead, he holds the collaboration with the Tron and BitTorrent Chain ecosystems that he oversees responsible for that.

The HECO bridge facilitates the movement of digital assets between the Huobi Eco Chain and other blockchains, such as Ethereum. This security breach is not an isolated incident but part of a broader pattern of security lapses associated with Sun.

Two weeks prior, Poloniex, an exchange acquired by Sun, suffered a $100 million exploit, for its compromised private keys. Negotiations with the hacker in that case are ongoing, and it remains unclear if the two thefts are directly connected.