Ethical dilemma solved as HTX reclaims stolen assets.
HTX, the cryptocurrency exchange operated by Huobi Global, announced it has successfully retrieved the $8 million in Ether that was stolen from its hot wallet in late September.
The crypto exchange has also granted the hacker a 250 Ether (ETH) reward.
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The cryptocurrency world recently witnessed HTX taking a different approach to dealing with hackers. The company recovered 95% of the 5,000 ETH, valued at around $8 million, from one of its hot wallets.
The HTX team contacted the hacker directly, saying they knew who they were, and issued an ultimatum. On top of that, HTX promised not to take legal action if funds were returned.
Justin Sun, an investor in Huobi Global and adviser to HTX, thanked the community and acknowledged the hacker's decision to return the funds.
He emphasized that enhancing the security of blockchain and the safety of user assets is a constant goal for HTX.
Strengthening blockchain security and protecting user assets is never an easy task, and we have been working tirelessly! Providing full security for user assets is always our goal to strive for!
The quarter has been challenging for the crypto industry in terms of security. A recent Immunefi report revealed that hacking incidents targeting crypto and Web3 projects surged to 76 in the third quarter of 2023, a significant increase from 30 in the same period last year.
In the same week that HTX was compromised, Mixin Network also fell victim to a cyber attack that resulted in a $200 million loss. Despite offering a staggering $20 million as a bug bounty, the probability of recovering the funds remains uncertain.
The HTX incident serves as both a cautionary tale and an innovative solution for crypto exchanges. While the crypto exchange has successfully recovered most of its lost assets and decided to reward the hacker with 250 Ether, it also highlights the need for heightened security in the rapidly growing crypto industry.
