- HECO Chain bridge was exploited, resulting in over $86.6 million worth of digital assets being drained and sent to suspicious wallet addresses
- PeckShield blockchain security firm first detected the exploit, noticing a $19 million Ether transaction followed by other assets like USD Coin and Shiba Inu tokens being drained
- In response, HECO Chain suspended deposits/withdrawals and Justin Sun, founder of Tron which backs HECO, promised affected users will be fully compensated for losses
The HECO Chain bridge, which facilitates cross-chain transfers, was recently compromised in an exploit. Over $86.6 million worth of digital assets were drained from the bridge and sent to suspicious wallet addresses. Justin Sun, founder of Tron which backs HECO Chain, has promised that affected users will be fully compensated for their losses.
Details of the Exploit
PeckShield, a blockchain security firm, first detected the exploit. They noticed a transaction for 10,145 Ether worth $19 million being drained from the bridge. This was followed by other assets like USD Coin, Chainlink, and Shiba Inu tokens also being siphoned away to different wallet addresses.
About HECO Chain
HECO Chain, also known as Huobi ECO Chain, officially launched on December 21, 2020. The chain was created to provide a cross-chain experience with lower gas fees compared to Ethereum. In 2022, Tron founder Justin Sun merged his blockchain’s bridge ecosystem with HECO Chain to combine both platforms.
Response to the Hack
In response to the exploit, HECO Chain has temporarily suspended all deposits and withdrawals. Justin Sun stated that HTX, the company behind HECO, will fully reimburse affected users. Services will resume once the investigation into this incident is completed.
This is the second recent hack of a Justin Sun-related crypto project. In November, crypto exchange Poloniex which Sun acquired in 2018 suffered a $100 million exploit potentially due to compromised private keys.