Huobi’s Hot Wallet Drained Of $7.9 Million – The Latest Crypto Heist

Global cryptocurrency exchange Huobi fell victim to a breach that saw $7.9 million worth of cryptocurrency, precisely 5,000 ETH, pilfered from one of its hot wallets.

A hot wallet, an easily accessible cryptocurrency wallet connected to the internet, was compromised in this breach, allowing the perpetrators to exploit this vulnerability.

The initial alert about the attack came from CyversAlerts, a reputable crypto-security firm known for detecting and reporting security breaches. The company shed light on this significant event, bringing it to the attention of the wider crypto community.

🚨Red Code🚨Yesterday, our ML-powered system detected a suspicious transaction involving @HuobiGlobal and @HTX_Global.
Despite our attempts to reach out, we received no response. An EOA received 5K $ETH $7.9M from @HuobiGlobal's hot wallet.

🔍 This morning, we spotted… pic.twitter.com/3oqHhAVi8P

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 25, 2023

Huobi didn’t take the attack lying down. They quickly swung into action, identifying the crypto wallet address used by the hackers and possibly even pinpointing the criminals themselves. In an audacious move, Huobi contacted the assailants through a transaction to their wallet. This transaction came with a message conveyed through Etherscan.

In this message, Huobi clarified that they were well aware of the attackers’ identities and offered an intriguing proposition: return the stolen funds within a specified timeframe and receive a 5% bonus on the stolen funds, amounting to approximately $400,000. 

In a surprising turn of events, Huobi even considered offering the hacker a position as a security consultant. However, a failure to comply with this ultimatum would force Huobi to involve law enforcement.

More about it here

Is the Lazarus Group Involved?

Crypto exchanges have long been attractive cyberattack targets due to their considerable holdings and sometimes weaker security frameworks. The crypto community has witnessed a series of hacks, often attributed to the Lazarus Group, an infamous cyberattack organization linked to North Korea.

Just a few days before the Huobi incident, CertiK, a prominent blockchain security platform, confirmed the involvement of the Lazarus Group in a $41 million heist from Stake online casino.

The Lazarus Group’s modus operandi involves stealing cryptocurrencies and sometimes converting them through swaps and bridges to evade detection. The nature and scale of this particular breach beg the question: is the Lazarus Group again behind a major attack?

As Huobi grapples with this breach, the coming days will shed light on the truth. The cryptocurrency community remains on edge, awaiting confirmation of the hackers’ identity and the extent of this audacious theft.

NB: Any Information provided is NOT FINANCIAL ADVICE. Do Your Research before making any Financial Decisions.