Unmasking the Crypto Chronicles: Justin Sun’s Platforms Hit by 4 Hacks in 2 Months!

Tron Founder Justin Sun’s Crypto Businesses Targeted by Hackers

Tron Founder Justin Sun’s Crypto Businesses Targeted by Hackers

Tron founder Justin Sun’s crypto businesses have come under repeated attack from hackers over the past two months, with at least four hacks of the largest exploits targeting platforms related to the crypto entrepreneur.

Sun’s HTX crypto exchange has been hacked at least twice since the platform rebranded from Huobi on Sept. 13, 2023. The first HTX hack occurred just a few days after the rebranding, with an unknown attacker stealing nearly $8 million in crypto on Sept. 24, 2023.

In its second hack, HTX reportedly lost $13.6 million due to a hot wallet breach in an incident that affected the wider HTX, Tron, and BitTorrent ecosystem. Previously known as Huobi, HTX was acquired by Sun in October 2022.

The hackers have also focused on other Sun-related cryptocurrency platforms, including Sun-owned cryptocurrency exchange Poloniex and Huobi’s HTX Eco Chain (HECO) bridge.

Poloniex suffered a significant security breach on Nov. 10, when attackers stole at least $100 million in cryptocurrency from the exchange. Sun, who acquired the business in 2019, reported on X (formerly Twitter) that Poloniex disabled the wallet. According to the blockchain security firm CertiK, the incident was likely a “private key compromise.”

Huobi’s HECO chain bridge, a tool designed for moving digital assets between HECO and other networks like Ethereum, also suffered a massive breach. On Nov. 22, unknown hackers compromised HECO, sending at least $86.6 million to suspicious addresses.

The platforms lost a combined sum of around $208 million in all four hacks over the past two months. Despite Tron founder Sun’s promise to compensate losses for all four incidents, some crypto enthusiasts have urged the community to stay away from Poloniex and HTX, with several questioning who might be involved in the hacks.

One crypto observer argued that Sun is “clearly in big trouble,” noting that Poloniex has been closed for five days and HTX offers 100% interest on cryptocurrencies like Bitcoin.

Security Measures and Speculation

“We can see that all these attacks have the same target: Justin Sun’s projects,” a spokesperson for the crypto security firm Hacken told Cointelegraph. The representative hypothetically assumed that the ongoing hacks could be caused by an “insider who is leaking the information,” adding: “Most likely, the reasons are private key leakage in all cases […] These projects definitely should improve the procedure for storing sensitive information like private keys, and if there is no need for such amounts of liquidity, keep part of the funds in cold wallets.”

HTX and Poloniex did not immediately respond to Cointelegraph’s request for comment.

Legal Troubles

The ongoing speculation comes months after the United States Securities and Exchange Commission filed a civil lawsuit against Tron Founder Sun, charging him and his companies like Tron and BitTorrent for fraud and other securities law violations in March 2023. A U.S. court subsequently issued a summons to Sun’s Singapore address concerning the case in April 2023. In August, the SEC said that its litigation against Sun was ongoing.

Protecting Your Crypto in a Volatile Market

With the recent increase in hacking incidents in the crypto industry, it’s important for investors to take steps to protect their assets in a volatile market. Here are some tips from Bitcoin OGs and experts:

  • Use a hardware wallet to store your cryptocurrencies offline and away from potential hackers.
  • Enable two-factor authentication (2FA) on all your crypto exchange and wallet accounts.
  • Regularly update your software and security measures to stay ahead of potential vulnerabilities.
  • Research and choose reputable exchanges and platforms with a strong track record of security.
  • Be cautious of phishing attempts and suspicious links, always verify the authenticity of websites before entering your login credentials.

By following these steps, investors can minimize the risk of falling victim to hacks and protect their valuable crypto assets.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

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