HTX Crypto Exchange Witnesses Significant Outflows Exceeding $258 Million After Recent Exploit; Google Greenlights US Crypto Trust Ads Ahead of Expected Bitcoin ETF Approval;FTX and Alameda Transfer $23.59M in Assets to Major Exchanges
In the aftermath of a security breach on November 22, crypto investors have been swiftly withdrawing their funds from the HTX cryptocurrency exchange (formerly known as Huobi). This exploit forced the exchange to halt its services temporarily, resulting in a total loss of $30 million.
Data from DefiLlama reveals that between November 25, when HTX resumed its operations, and December 10, the exchange experienced a substantial net outflow of $258 million. According to DefiLlama, HTX’s reserves are currently composed of 32.3% Bitcoin (BTC) and 31.8% Tron (TRX), the native currency of the Tron network launched by Justin Sun in 2017.
As of the latest update, HTX stands as the 16th largest cryptocurrency exchange by daily trading volume, registering a total trading volume of $1.6 billion in the last 24 hours, according to CoinMarketCap.
Following the restart on November 25, Justin Sun, the prominent figure associated with HTX, assured affected users full compensation for losses incurred in the hot wallet and announced an ongoing investigation. Unfortunately, HTX and other entities linked to Sun, such as Poloniex and the HECO bridge, have fallen victim to hacking incidents four times within the past two months.
The first hack targeted HTX less than two weeks after its rebranding on September 24, 2023, resulting in the theft of nearly $8 million in cryptocurrency. The most significant breach occurred on November 10, involving the Poloniex exchange, with a reported loss of $100 million, attributed to a compromised private key.
Furthermore, the HECO Chain bridge, designed for facilitating the movement of digital assets between HTX and other blockchain networks, experienced a substantial breach on November 22. Hackers compromised HECO, redirecting at least $86.6 million to suspicious addresses.
November 2023 marked a grim milestone as the worst month for crypto theft, witnessing hackers and malicious actors absconding with a staggering $363 million in ill-gotten digital assets.
Google Greenlights US Crypto Trust Ads Ahead of Expected Bitcoin ETF Approval
Google, the technology behemoth, has made noteworthy adjustments to its advertising policy within the cryptocurrency realm, signaling a shift towards embracing crypto trusts. This change, slated to take effect at the close of January, coincides with optimistic predictions of the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States during the same month.
Outlined in a policy alteration log dated December 6, Google delineated that its ad policy for crypto and related products would be amended on January 29, 2024. The modification allows advertisements from “advertisers offering Cryptocurrency Coin Trust targeting the United States.” Notably, advertisers eyeing crypto trusts must attain Google certification, a process contingent upon possessing the requisite license from the pertinent local authority. Furthermore, their products, landing pages, and advertisements must align with all local legal requirements of the designated country or region.
While Google has already accommodated advertising for certain crypto and related products, specific restrictions persist. Notably, ads for crypto or nonfungible token (NFT)-based gambling platforms, initial coin offerings, decentralized finance protocols, and services delivering trading signals remain excluded.
This strategic policy shift aligns with the projections of Bloomberg’s ETF analysts, who estimate a 90% likelihood of the U.S. granting approval for a spot Bitcoin ETF by January 10, 2024. The potential approval of multiple pending applications simultaneously adds complexity to the evolving landscape. Presently, there are 13 applicants for a Bitcoin ETF, and public disclosures regarding their approval processes remain scarce. Key figures in the financial sector, including fund managers from BlackRock, Grayscale, and Fidelity, have reportedly engaged with the U.S. Securities and Exchange Commission, delving into “key technical details” surrounding their ETF proposals.
FTX and Alameda Transfer $23.59M in Assets to Major Exchanges
In a recent development spanning four days, wallets linked to now-defunct cryptocurrency trading firms FTX and Alameda Research orchestrated the transfer of $23.59 million in digital assets to prominent cryptocurrency exchanges, including Binance, Coinbase, OKX, and Galaxy Digital OTC.
Spot On Chain, a blockchain analytics firm, uncovered this movement and estimated that these inactive entities have shifted a total of $591 million since October 24, utilizing 59 different cryptocurrency tokens.
FTX’s associated wallets, in their latest transfer of $23.59 million, diversified across 19 tokens. Notable assets included 3,150 Ether valued at $6.8 million, 59.6 million Aleph.im (ALEPH) worth $6.41 million, $2.48 million in Curve DAO (CRV) tokens, as well as holdings in Avalanche, Chainlink’s LINK, Pundi X (PUNDIX), Reserve Rights (RSR), Dogecoin (DOGE), Bitcoin Cash, Chromia (CHR), Axie Infinity (AXS), Polygon’s, Uniswap, Orbs (ORBS), Frax Share (FXS), Polkadot (DOT), STEPN GMT, 1inch (1INCH), and Solana (SOL).
On October 24, FTX and Alameda wallets executed a $10 million transfer to a single wallet address, subsequently redistributing the funds to accounts on Binance and Coinbase. A similar transaction occurred on November 1, involving the movement of $13.1 million to Binance and Coinbase accounts.
This financial activity traces back to March, initiated by FTX and Alameda to recover assets for investors. During this period, three wallets associated with these entities moved $145 million worth of stablecoins to various platforms, including Coinbase, Binance, and Kraken. Of the total, $69.64 million in Tether (USDT) was transferred to custodial wallets on crypto exchanges, while the remaining $75.94 million in USD Coin (USDC) found its way to a Coinbase custodial wallet.
Despite having recovered over $5 billion in cash and liquid cryptocurrencies, the troubled cryptocurrency exchange is grappling with outstanding liabilities amounting to $3.8 billion.
