Crypto exchange Huobi Global has recovered the funds drained in a recent hack after negotiating with the attacker. Huobi’s HTX exchange division saw 5,000 ETH stolen on Sept. 25, worth about $8 million.
Shortly after the hack, HTX said it identified the hacker and offered a deal – return 95% of funds by Oct. 2 and receive a 5% bounty, or around $400,000, with no legal action taken.
Huobi’s Justin Sun said the hacker made the right choice
Huobi adviser Justin Sun announced on Oct. 7 that the hacker made the right choice, returning the bulk of stolen assets. HTX paid out a 250 ETH bounty as agreed for the mostly recovered funds.
Sun thanked the wider crypto industry for assistance and said Huobi remains committed to strengthening security and protecting user assets. The negotiated resolution avoided total loss from the hot wallet breach.
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By identifying the attacker and establishing a deadline, Huobi deterred them from fully absconding with the loot. The bounty payment for returning funds likely exceeded what the hacker could have cashed out from exchanges.
The incident shows exchanges have options beyond lawsuits to recover from hacks. However, preventing hot wallet breaches remains imperative to avoid jeopardizing customer funds.