In the last two weeks, HTX Exchange has experienced net outflows of $258 million despite Justin Sun’s endeavors to revive the exchange.
Justin Sun, the founder of Tron, has been experiencing considerable difficulty due to issues at his crypto exchange, HTX.
Since resuming operations after a significant cyber breach, the HTX exchange has experienced a staggering net discharge of $258 million.
HTX Exchange Experiences Abrupt Outflows
Formerly known as Huobi, HTX, as of the last 24 hours, has maintained an average trading volume of $1.6 billion, which ranks it among the 20 most active cryptocurrency exchanges.
According to data provided by DefiLlama, the exchange experienced an outflow of $258 million between November 25 and December 10.
This behavior alludes to a degree of unease on the part of clients in the wake of the security breach that occurred a month ago.
HTX reported a loss of $30 million in crypto tokens due to the breach and temporarily halted withdrawals and deposits in the aftermath of the attack.
Furthermore, Sun maintains an affiliation with the Poloniex exchange and the HECO Bridge, an infrastructure that HTX created to facilitate cross-blockchain transactions.
Security vulnerabilities transpired at Poloniex and HECO in November, leading to the illicit acquisition of an estimated $200 million in cryptocurrencies.
In a communication on X after the November security incident involving HTX, Sun revealed an ongoing investigation and affirmed the exchange’s dedication to “fully compensate for HTX’s hot wallet losses.”
Notably, $8 million had been illicitly extracted from the platform by hackers in September.
Additionally, HTX is another major exchange that has experienced significant outflows over the past month.
Binance, the largest exchange globally, experienced significant outflows in billions of dollars after the $4.3 billion settlement.
An Analysis Of Exchange Reserves
According to a report by DefiLlama, Bitcoin (BTC) comprises the most substantial proportion, approximately 33%, of the reserves held by HTX.
Launched by Sun in 2017, the TRX token from the Tron blockchain accounts for approximately 32%.
HTX’s native exchange coin, HT, comprises approximately 14% of the reserves, with stUSDT, a token associated with the Sun, accounting for the remaining 12%.
TRX has garnered significant attention due to the allegations of fraud levied against Sun in the United States.
The Securities and Exchange Commission accused Sun and his entities of market manipulation in a lawsuit filed in March, alleging that they inflated the trading activity of the token artificially.
In response to the lawsuit, Sun stated on Twitter that it “lacks merit.”
As reported by the security firm BlockSec, HTX has effectively recovered the $8 million stolen in September.
However, according to BlockSec, the hackers appear to retain control of the $30 million compromised in the recent security breach.
