- An $8 million Ethereum hack prompts HTX Global advisor, Justin Sun, to establish a SAFU fund for enhanced security.
- Sun’s proposal offers a reactive measure to assure users of their assets’ safety on the platform.
In the trail of a substantial security breach at HTX Global, previously known as Huobi, that led to a loss of 5,000 Ethereum (ETH) valued at $8 million, the company’s advisor Justin Sun has stepped forward with a remedial measure. Unveiling the establishment of a SAFU (Secure Asset Fund for Users) fund, Sun aims to fortify the platform’s defense against such adversities and assure the community of its commitment to safeguarding user assets.
Robust Countermeasure: The SAFU Fund
The unveiling came on the heels of the hacking incident that shook the crypto realm on September 25, 2023. Sun, also the founder of TRON, articulated the company’s staunch stance on user asset protection, underscoring the importance of a robust security infrastructure. The SAFU fund is envisioned as a financial buffer to counter any losses arising from platform security glitches.
Sun elaborated on the scheme, stating,
“We have established the SAFU fund to be prepared at all times for losses resulting from platform security issues. Additionally, we have implemented real-time monitoring mechanisms to prevent such losses.”
He emphasized the exchange’s multi-backup, multi-signature cold wallet system as a testament to the platform’s fortified security apparatus.
Additionally, Sun announced a forthcoming Twitter Space discussion slated for September 26, 2023, to delve into the exchange’s security framework further. This interactive session is perceived as an initiative to enhance transparency and engagement with the community concerning the platform’s security protocols.
Sun’s Hacker Détente
In a unique turn of events, Sun has extended a 5% reward offer from the pilfered funds to the hackers, conditional to the return of the stolen assets within a week’s deadline. The lack of response from the hackers so far has done little to waver Sun’s resolve, who has threatened legal repercussions if the assets aren’t returned within the stipulated timeframe.
The SAFU fund initiative alongside the proposed dialogue with the user community represents a dual-pronged approach by Sun and HTX Global to restore trust and reinforce security mechanisms, evincing a proactive stance in the volatile realm of cryptocurrency exchanges.