The recent security breach at the HECO Bridge has sent shockwaves through the cryptocurrency world, after more than $86 million was transferred unauthorized.
This bridge is vital for the transfer of funds between Ethereum and the Heco chain, and its integrity was compromised by a massive security incident.
The alarm was initially raised by Cyvers Alerts, an on-chain security platform, which detected multiple suspicious transactions from the HECO chain bridge.
🚨Code Red!🚨 (Ongoing)Our AI powered system has detected multiple suspicious transactions from @HECO_Chain bridge
Suspicious address has received around $85M. Suspicious address: https://t.co/JlMClIM7hg
First transaction is 10,145 $ETH from @HECO_Chain bridge to suspicious… pic.twitter.com/IwpqXvhCsU
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) November 22, 2023
One specific address, identified as suspicious, received approximately $85 million, a considerable amount that raised immediate red flags.
The first transaction, recorded on etherscan.io, showed the transfer of 10,145 Ether (ETH) from the HECO bridge to this address indicated as suspicious.
The Estimated Losses Caused by This Breach at Around $86.6 Million to HECO Bridge
PeckShield expressed suspicions about the possibility of a deliberate exploitation or “rug pull,” given that the stolen funds were quickly funneled to decentralized exchanges and converted into other cryptocurrencies.
The HECO Bridge is a pivotal component within the HTX Eco Chain, also known as HECO, which was officially launched on December 21, 2020.
This platform aims to facilitate interactions and asset transfers between different blockchains, providing a cross-chain experience with lower gas fees compared to other networks.
The initiative stemmed from the merger between the Tron and BitTorrent bridge ecosystems, amalgamating both systems into HECO in 2022 under the guidance of Justin Sun.
This incident is not isolated, but part of a series of security problems that have affected projects linked to Justin Sun.
These include the merger of the TRON and BitTorrent ecosystem with HECO last year, as well as recent hacks such as the $117 million hack on the Poloniex exchange and the $8 million hack on the HTX exchange, both related to Sun projects.
Concern is spreading in the cryptocurrency community as investigations are carried out to mitigate the impact of this event.
Users and investors are being urged to remain cautious amid the uncertainty surrounding the safety of the HECO and its associated projects.
