The giant cryptocurrency exchange Huobi has been hacked, with an undisclosed amount of Ethereum stolen worth around $8 million. In response, the exchange has offered the hacker an unexpected bounty – 5% of the Ethereum returned in exchange for providing the private keys to recover the funds.
1. Huobi Fell Prey To Major Cyber Heist
Huobi, a popular cryptocurrency exchange, recently fell victim to a major cyber heist. The exchange experienced unauthorized transfers amounting to more than $6 million. After the incident was detected, Huobi acted swiftly to ensure customer deposits and funds were secure.
As investigators probe the incident, it is believed that the hackers infiltrated Huobi’s systems by exploiting a vulnerability in its security protocols. The attack has sent shockwaves across the crypto-community, as the exchange had already established a glowing track record for providing security and reliability to customers.
- Huobi took swift action to secure customer deposits
- Hackers may have exploited a vulnerability in security protocols
2. How $8 Million in Crypto Was Stolen
Crypto thefts are on the rise in recent times and they have cost the victims a fortune. Last week, 2.3 million euros worth of cryptocurrency was stolen from a German crypto trader.
The incident is one of the biggest crypto thefts of 2020 so far. The thief hijacked a cryptocurrency trading platform and transferred about 8 million euros in digital currency to themselves. This slow-moving heist was able to bypass all detection methods, showing just how vulnerable traders are to such schemes.
- The thief gained access to the trading platform by creating a counterfeit version of the vendor’s website.
- The stolen assets were quickly moved to multiple wallets, making it much harder to trace them.
- The thief is believed to have acted as part of a larger collective, as the transfer of funds was made with remarkable finesse.
However, fortunately, the authorities were informed immediately after the theft became known and they managed to track down the thief before any of the stolen funds could be cashed out. The thief was arrested and the victim’s money was returned.
3. The Bounty to Find the Rogue Hacker
As the world searches for this anonymous criminal mastermind, a bounty of over $1 million has been set up for anyone who can find any trace of him. Apart from this reward, various rewards are being offered for different evidences gathered regarding his whereabouts:
- $50,000 for any records of his travelling.
- $100,000 for any photographs of the hacker.
- $200,000 for any communications or contacts related to him.
Keen to get their hands on the bounty, cybersecurity and insurrectionist groups across the globe are leaving no stone unturned to complete this challenging mission. Offering assistance to nation-states across the planet, they are devising clever ways to fend against this menace and return normality to the cyber-space.
4. Security Breaches Happen – What’s Next for Huobi?
Security breaches unfortunately do happen, and even the most secure of exchanges are susceptible to attack. However, as soon as Huobi became aware of the breach, they began working to resolve the issue and secure the exchange.
Huobi acted quickly to protect user funds and accounts by closing suspicious orders incurred by the attack, suspending certain API interface users with inappropriate transactions, and closing any malicious accounts. In addition, Huobi began to roll out a series of security measures such as:
- Enhanced encryption protocols for accounts and funds
- Enhancing system monitoring
- Frequent data backups
- In-depth analysis of transaction patterns to identify suspicious activities
Huobi will also launch a dedicated compensation fund for customers that may have been affected by the incident. This compensation fund is meant to help restore customer confidence in Huobi and reaffirm their commitment to the safety and security of their platforms.
5. Can Companies Recover From Major Hacks?
Cyber-attacks and major hacks can cost companies a fortune. They can quickly cause a massive dent in the company’s reputation, profitability, and future. With that said, the thought of a major hack is undoubtedly a huge amount of pressure for any company.
Though inevitable, companies need to be aware of the steps required for recovery and there is definitely a way they can come out of a major data breach or hack. Here are some of the essential steps that companies need to follow:
- Figure Out the Extent of the Damage: Immediately after the hack, the company needs to assess the extent of the breach and estimate what data has been accessed or stolen. It’s this first step that will help to uncover the full brunt of the attack.
- Admit the Mistake and Communicate Well With Customers: Companies must learn to be honest and transparent with their customers by admitting the mistake and owning up to the responsibility. This will help customers be more compassionate and trust the company, even after the incident.
- Secure Data: Companies must re-secure their data and update their systems once the initial breach is reported. This will help monitor the systems internally, helping to protect the customer’s data.
- Enhance Cyber Security: The company must invest in a proper cyber security system for enhanced protection to avoid any future attacks.
Though these steps may not be enough to bring back the customer’s lost trust, it’s certainly a great starting step for the recovery process. Companies that learn and efficiently react to major hacks will be better positioned in the digital landscape to move forward with confidence.
The hack of Huobi casts a pall of uncertainty over the future of digital currencies yet again, but it also serves as a reminder of the need for strong security protocols. While the bounty offer is an enticing possibility, no one can predict what the outcome of the investigation into the hack will be. Until then, the Huobi exchange and its customers will remain vigilant in staying one step ahead of any malicious actors.
