Huobi’s Hot Wallet Reportedly Drained of $7.9 Million – What Happened?
An error in Huobi’s hot wallet reportedly allowed an unintended hacker to drain millions of dollars worth of cryptocurrency from the exchange on July 1, 2020.
The funds were allegedly drained from Huobi’s hot wallet, which is a wallet used to store customer funds. Multiple reports have indicated that the hacker was able to gain access to Huobi’s wallet through a known vulnerability in the software used to manage the wallet. Huobi has stated that they are actively investigating the incident and have confirmed that customer funds are not impacted by the hack.
Huobi has also announced that they are working with law enforcement to track down the hacker and recover any stolen funds. They are also offering an additional 5 million HUSD (Huobi’s native token) to whoever finds the hacker.
It is still unclear at this stage how much money was stolen, although some reports have suggested that the hacker may have managed to steal as much as $7.9 million worth of cryptocurrencies. Huobi has yet to confirm the exact amount that was stolen, but they have asserted that the loss has been covered and so customer funds should not be impacted.