Huobi Global, a prominent cryptocurrency exchange, has successfully retrieved $8 million worth of stolen Ether (ETH). After engaging in an unconventional negotiation, the hacker responsible for the theft “made the right choice.” Justin Sun shared the news on Twitter, commending the hacker for choosing to return the funds.
In his tweet, Sun confirmed the hacker’s full restitution of the stolen funds, as per their agreement. He revealed that a white hat bonus of 250 ETH was awarded to the hacker. Sun emphasized that ensuring the complete security of user assets remains a top priority for Huobi Global.
About the hack
The hacking incident was initially disclosed by HTX on September 25 when one of the exchange’s hot wallets was compromised. Which resulted in the theft of 5,000 ETH. At that time, Sun assured HTX’s customers that the stolen amount, while significant, was relatively small compared to the exchange’s substantial assets, which total approximately $3 billion.
As a proactive measure to encourage the hacker, HTX pledged a white-hat reward equivalent to 5% of the stolen ETH. However, it was stated that if the offer was not accepted within a week, law enforcement authorities would be contacted.
Negotiating with hackers to recover stolen cryptocurrency funds has become a recourse for several crypto firms instead of immediately involving law enforcement agencies. In some instances, these negotiations have resulted in the return of a substantial portion of the stolen funds, accompanied by a bounty paid to the hacker as part of the resolution.
Cryptocurrency exchanges continue to face persistent risks of hacking incidents. A report by Immunefi from July 2023 highlighted a 63% increase in blockchain hacks during the second quarter compared to the previous year. Notably, most of these attacks occurred on decentralized finance (DeFi) platforms, accounting for losses of $228 million across 79 incidents. In contrast, centralized exchanges like HTX reported losses of $37 million across just two incidents during the same period.
This incident underscores the ongoing challenges and vulnerabilities within the crypto space, emphasizing the need for robust security measures and innovative approaches to combat cyber threats.
