Justin Sun-linked cryptocurrency exchange HTX (Huobi) is experiencing an outflow of funds following the November 22 hack that suspended its services and caused it to lose a total of $30 million.
According to DefiLlama, the outflow of funds from HTX reached $258 million between November 25 and December 10, indicating that some users are concerned about the security of the exchange.
Despite Justin Sun's statement that the exchange will reimburse the losses, the incident has cast a shadow over companies associated with the Chinese entrepreneur and raised community concerns about the platform's security, as this is not the first hack.
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Earlier in September, the HTX exchange's hot wallet was hacked, resulting in the theft of 5,000 ETH worth about $8 million, and later on November 10, the Poloniex exchange was attacked by hackers, causing $10 million in damages. Justin Sun owns a majority stake in Poloniex, according to Dimsum Daily.
Despite the breach, HTX maintained its position in the top 20 largest cryptocurrency exchanges by trading volume. According to CoinMarketCap, the cryptocurrency exchange's average daily trading volume is $1.6 billion.
It's worth noting that following the collapse of the FTX platform, many cryptocurrency market participants have increased their vigilance for flows and reserves on virtual currency exchanges.
Research conducted by DefiLlama shows that the largest portion of HTX reserves are held in BTC at 33%. The TRX token from the Tron blockchain, which was launched by Justin Sun in 2017, accounts for about 32% of reserves. The HTX HT exchange coin is about 14%, and stUSDT is 12%.
Given the rate at which millions of dollars are leaving HTX, many experts are wondering what the exchange will do to regain the trust of its users.
Meanwhile, hackers and other attackers stole $363 million in digital assets in November, making it the worst month for cryptocurrencies this year.
Read more: $4.3 billion deal didn't help Binance avoid SEC prosecution.
