In the past two months, hackers have repeatedly targeted the crypto platforms of Tron founder Justin Sun, with at least four of the most significant hacks affecting platforms associated with him.
At least two hacks have occurred on Sun’s HTX cryptocurrency exchange since the platform changed its name from Huobi on September 13, 2023. The initial HTX breach transpired shortly after the rebranding, on September 24, 2023, when an unidentified assailant pilfered nearly $8 million in cryptocurrency.
Reportedly, HTX lost $13.6 million in its second breach, which resulted from a hot wallet intrusion that impacted the HTX, Tron, and BitTorrent ecosystems. Sun acquired HTX in October 2022; the platform was formerly Huobi.
Additionally, Sun-owned cryptocurrency exchange Poloniex and Huobi’s HTX Eco Chain (HECO) bridge were among the additional platforms targeted by the hackers.
Attackers stole a minimum of $100 million in cryptocurrencies from Poloniex on November 10, resulting in a significant security violation. Sun, who in 2019 acquired the company, disclosed on X (previously Twitter) that Poloniex had deactivated the wallet. “Private key compromise” is the most probable explanation for the incident, per the blockchain security firm CertiK.
A significant breach also compromised Huobi’s HECO chain bridge, a device that transfers digital assets between HECO and other networks such as Ethereum. Unidentified hackers breached HECO on November 22 and transferred a minimum of $86.6 million to dubious addresses.
The platforms have suffered a cumulative loss of approximately $208 million in the past two months due to the four breaches.
Although Tron founder Sun committed to compensate losses for all four incidents, certain crypto enthusiasts have cautioned the community against investing in Poloniex and HTX, with some even raising concerns about the identities of those responsible for the breaches.
A crypto analyst opined that Sun is “obviously in serious trouble,” citing the five-day closure of Poloniex and the fact that HTX pays one hundred percent interest on cryptocurrencies such as Bitcoin.
The persistent conjecture arose several months after the United States Securities and Exchange Commission initiated a civil litigation against Tron Founder Sun and his enterprises, including Tron and BitTorrent, on securities law violations and fraud charges in March 2023.
The case was subsequently the subject of a summons issued by a U.S. court to Sun’s address in Singapore in April 2023. The SEC declared its litigation against Sun to be ongoing in August.
