Heco Chain Faces $86 Million Exploit: On-Chain Security Platform Raises Alarms

Heco Chain faces an exploit that raises concerns about the security of the bridge, which facilitates fund transfers between Ethereum and the Heco Chain.

Initial reports, validated by Wintermute's Head of Research Igor Igamberdiev and blockchain analysts PeckShield, suggest that approximately $86.6 million was extracted from the Heco bridge. The funds swiftly found their way to decentralized exchanges, where they were converted into various tokens. 

PeckShield published an alert alerting users to the transfer of 10,145 Ether worth $19 million. A number of other transactions followed, involving digital assets such as USDC, SHIBA, and LINK.

Responding to the incident, Tron founder Justin Sun declared that HTX would fully compensate users for losses resulting from the hack. As part of its response strategy, HTX has temporarily suspended deposits and withdrawals, allowing for a thorough investigation. Sun assured users that services would resume once the investigation concluded.

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Suspicious Withdrawals and Broader Vulnerabilities

In addition to the bridge breach, Igor Igamberdiev reportedly identified $23 million in suspicious withdrawals from HTX, mirroring patterns observed in the Heco attack. HTX has initiated the transfer of remaining funds to a recovery wallet, hinting at potential vulnerabilities in its infrastructure.

This recent incident marks the second exploit involving a project associated with Tron founder Justin Sun. On November 10, Poloniex, an exchange acquired by Sun in 2018, suffered a $100 million exploit. Security analysts suspect the compromise may have stemmed from the compromise of private keys.