According to Cointelegraph: Crypto platforms related to Tron founder Justin Sun have been subjected to a series of security breaches over the past couple of months. The entrepreneur's businesses have witnessed at least four hacking attempts.
Sun's HTX crypto exchange, rebranded from Huobi in September 2023, has been hacked twice. The first attack occurred a few days post-rebranding, with an unidentified attacker pilfering nearly $8 million in cryptos on September 24, 2023. In a second attack, HTX reportedly lost $13.6 million due to a breach in a hot wallet, an incident that impacted the broader HTX, Tron and BitTorrent ecosystems.
Other platforms linked to Sun, including his cryptocurrency exchange Poloniex and HTX Eco Chain (HECO) bridge, have also been targeted. Poloniex suffered a significant security breach on November 10, with attackers looting at least $100 million in cryptocurrency. Sun reported on X (formerly Twitter) that the wallet in question had been deactivated. Blockchain security firm CertiK suggests that the incident was likely due to a private key compromise.
HTX's HECO Chain bridge, a feature intended for the transfer of digital assets between HTX and other networks like Ethereum, also experienced a substantial breach. On November 22, unidentified hackers compromised HECO, redirecting at least $86.6 million to suspicious addresses.
These platforms collectively lost around $208 million across four hacks within two months. Despite Sun's assurance that all losses from the incidents would be compensated, the crypto community has voiced concerns and skepticism about Poloniex and HTX. Some have even speculated about possible insider involvement in the hacks.
A spokesperson from the crypto security firm Hacken conjectured that the recurring hacks may be the result of an insider leaking information, adding that the projects should enhance their procedures for handling sensitive data like private keys.
In the wake of these incidents, Sun is already facing pressures from legal challenges. In March 2023, the U.S. Securities and Exchange Commission filed a civil lawsuit against Sun and his companies, including Tron and BitTorrent, charging them with fraud and other securities law violations. Sun received a summons for the case at his Singapore address in April 2023. The SEC confirmed the ongoing nature of the litigation in August.
