HTX Hacker Returns Funds
The hacker responsible for the nearly 5,000 ETH exploit on the Seychelles-headquartered cryptocurrency exchange HTX (formerly known as Huobi) last month has decided to return the stolen funds.
Towards the end of last month, the exchange fell victim to a hack, resulting in a loss estimated at around $8 million. According to on-chain data, the hacker has repatriated the pilfered cryptocurrency, marking a significant development in the aftermath of the cyberattack.
Hacker rewarded
The returned funds were sent back in two separate transactions, one consisting of approximately 4,000 ETH and the other totaling around 1,000 ETH. HTX advisor and Tron Founder, Justin Sun, took to X (formerly Twitter) to officially confirm the recovery. In his statement, Sun revealed that HTX had not only received all the stolen funds as promised by the hacker but had also extended a gesture of goodwill. HTX rewarded the responsible party with a “white hat bonus” amounting to 250 ETH, equivalent to a substantial $400,000.
Sun expressed his satisfaction with the hacker’s decision, stating:
“We have confirmed that the hacker has fully returned all funds, as promised, and we have also paid the hacker 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.”
Hacker advisory message
During the return of the funds, the hacker conveyed a message on-chain, shedding light on the reason behind this act of restitution. The message read:
“Received your message. White hat bonus to
0x1Fc8674A51D6b97C968BE384337519CE7003152B. Your system hot wallet private key leak, you should change system hot wallet address and reduce the system hot wallet rate.”
HTX, in response to the hacker’s decision to return the funds and in accordance with its commitment, promptly sent the white hat bonus to the specified address. The exchange also requested the hacker to provide a detailed security vulnerability analysis report to the email address htxsafe@htx-inc.com.
This request aims to prevent similar incidents in the future, with assurances that the hacker’s privacy will be safeguarded.
Justin Sun had confirmed the original hack in September, at the time reassuring the community that HTX had covered all losses arising from the attack and resolved associated issues satisfactorily.
While acknowledging the severity of the hack, Sun pointed out that the stolen amount represented a relatively small fraction of the $3 billion in assets held by HTX’s users. To incentivize the return of the funds, HTX had even offered a reward of 5%, which equated to $400,000.
However, Sun also emphasized that if the funds had not been returned within a seven-day window, the company would have been compelled to involve law enforcement authorities.
Thankfully, it did not come to that, and the cryptocurrency exchange can now move forward with the confidence that its users’ assets are secure. This incident highlights the importance of cooperation and ethical choices within the crypto community, as well as the potential for resolution even in the face of cyberattacks.
