Major breaches at HTX Exchange and KyberSwap Dex lead to massive losses, while CZ's legal troubles mount and a Netflix Director's Dogecoin bet pays off.
HTX Exchange and HECO Bridge Hacked for $100M

HTX Exchange and HECO Bridge Hacked for $100M

Nov 24, 2023
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Welcome to the latest edition of Datawallet Daily. Here is your comprehensive rundown of the most important crypto news from the past 24 hours.

HTX Exchange and HECO Bridge Hacked for Around $100M

Crypto exchange HTX and Heco Chain, a blockchain protocol, were recently hacked, resulting in a significant loss of about $97 million in various tokens. Justin Sun, an investor in HTX, has confirmed the breach and assured that the exchange will fully reimburse users for their losses. Currently, HTX has suspended all deposits and withdrawals, but the remaining funds are secure. 

The suspected cause of the hack is a private key leak, which allowed unauthorized access to the Heco bridge, a mechanism for transferring tokens between Heco Chain and Ethereum. This incident follows a smaller $8 million hack at HTX in October, where all losses were subsequently covered. Investigations into the recent attack are ongoing, with a focus on identifying its root cause before resuming normal operations.

KyberSwap Dex Hit by $48M Hack

KyberSwap, a decentralized exchange, has been hacked, resulting in a theft of around $46 million across various blockchains. The lost assets include $20 million in Wrapped Ether, $7 million in Lido-staked Ether, and $4 million in Arbitrum tokens. The exploit triggered a sharp 68% drop in the platform’s total value locked, plummeting from $134 million to $27 million. Following the incident, KyberSwap alerted its users and recommended withdrawing their funds for safety.

The Kyber Network Crystal token (KNC) initially dipped 7% but has since recovered. The attacker left a message for negotiations, marking a serious concern for the platform and its users.

Prosecutors Seek to Keep CZ in Country Until Sentencing

U.S. prosecutors are requesting that Changpeng “CZ” Zhao, the former CEO of Binance, remain in the U.S. until his sentencing in February 2024, citing flight risk concerns. Zhao, who has admitted to violating the Bank Secrecy Act, is currently on a $175 million bond. His case is complicated by his substantial assets abroad and residency in the UAE, a country without a U.S. extradition treaty. 

This development follows Binance’s $4.3 billion settlement with U.S. authorities, leading to Zhao’s resignation and the appointment of Richard Teng as the new CEO. Zhao publicly acknowledged his mistakes and the need to accept responsibility.

Director Risks $4M of Netflix Budget on Dogecoin

Carl Erik Rinsch, the director of Netflix’s sci-fi series “Conquest,” reportedly used $4 million of the show’s budget to bet on Dogecoin, turning it into $27 million. This move is part of a larger controversy, as outlined in a New York Times report citing a confidential arbitration proceeding. 

Rinsch initially received $44 million from Netflix for the series and later an additional $11 million. He allegedly used $10.5 million of this funding in stock market bets, losing nearly $6 million. After his Dogecoin success, Rinsch reportedly spent nearly $9 million on luxury items and vehicles. 

Now, he is seeking $14 million in damages from Netflix in a confidential arbitration, claiming breach of contract, while Netflix denies owing him anything. The case was heard by an arbitrator in November, with a ruling expected soon.

Other breaking news

Wrapping up

Wrapping up today’s edition, it seems hacks are now a bi-daily affair. HTX Exchange and HECO Bridge suffered a $100M hack, while KyberSwap Dex faced a $48M hit. In ongoing Binance drama, CZ might remain in the U.S. until his sentencing. Meanwhile, a Netflix Director has made a fortune by investing his show’s budget in Dogecoin. Tune back in tomorrow for the latest and greatest in the crypto world.