Huobi's Hot Wallet Reportedly Drained of $7.9 Million – What Happened?
Global cryptocurrency exchange Huobi was the victim of a cyberattack that resulted in the theft of 5,000 ETH worth approximately $7.9 million.
CyversAlerts, a reliable crypto security company, was the first to report the attack.
The blockchain firm stated that the attack was successful due to a compromise in one of Huobi's hot wallets. Hot wallets are easily accessible cryptocurrency wallets connected to the internet.
Huobi Global investor Justin Sun also confirmed the attack on X earlier today, September 25, 2023.
Per the reports from CyversAlerts, the global exchange seems to have detected the crypto wallet address used and the identity of the criminals involved. As a result, they have contacted the culprits with an interesting proposition.
Huobi sent a transaction to the hacker's wallet address with a message, per details on Etherscan.
They informed the culprits that they knew their identity and demanded the return of funds within a specific timeframe.
Huobi has promised to reward the cybercriminals with a 5% bonus for the stolen funds – about $395K. In addition, the exchange is planning to hire the hacker as a security consultant, as confirmed by Sun on X.
However, failure to return the stolen funds within the timeline would lead to Huobi involving law enforcement.
Crypto exchanges have been a profitable cyber-attack target due to their weak security architecture and because they hold large crypto funds.
According to Crystal Blockchain report, approximately $16.7 billion in cryptocurrencies was stolen between January 2011 and February 2023.
A series of hacks have been recorded in the crypto landscape, which is believed to be caused by the Lazarus Group, a popular cyberattack organization affiliated with North Korea.
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