Justin Sun says customers’ assets are 100% safe despite 200 million USD hacked from exchanges

Customer deposits at crypto exchanges HTX and Poloniex are “100% safe” despite recent hacks, according to Justin Sun – the owner of both platforms.

Speaking to CoinDesk, he said that both platforms have recovered from the hack and have already resumed user withdrawals for the vast majority of their assets.

“I think at HTX we have already recovered 95% of the assets in USD,” said Sun. “At Poloniex we have recovered about 85% of the USD value of the assets.”

In early November, Poloniex lost $125 million from its hot wallet after a hacker stole a wide range of over 175 different tokens from the exchange. At the time, Sun confirmed that such losses were “manageable” and could be covered for users by the exchange’s revenue.

Later that same month, HTX-controlled HECO chain lost $86.6 million after its bridging connection to the Ethereum network was severed by hackers. Here too, Sun promised that all losses would be reimbursed by the stock market revenues, which were said to have exceeded $200 million in the third quarter alone.

“Since we have already covered all losses of tokens on the platform, on HTX and Poloniex, 100% of the assets are 100% “Sure,” Sun told CoinDesk. “Even if, in terms of the stock exchanges themselves, we have to generate these profits in the future. But it is 100% safe for customers’ assets.”

A spokesperson for HTX added that the lost funds represented only a “small portion” of the exchange’s total reserves and that the company could continue to operate.

The influence of Justin Sun

Due to withdrawal restrictions on certain altcoins, HTX and Poloniex have seen trading premiums on both Bitcoin (BTC) and Tron (TRX) – the assets for which withdrawals are possible – as traders liquidate their small-cap positions to withdraw their funds from to get the platform.

Sun has promised to compensate affected customers through a Tether (USDT) airdrop, offering customers one stablecoin for every dollar of tokens they hold on exchanges.

The billionaire’s influence in the crypto industry is great: Before launching Poloniex in 2019, Sun founded the Tron blockchain in 2017, which is now the 11th largest cryptocurrency with a market capitalization of over $9 billion.

Like many other crypto founders, Sun now faces a lawsuit from the Securities and Exchange Commission (SEC), which claimed in March , Sun failed to disclose paid celebrity endorsements for Tron’s TRX and BTT tokens.

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Margharet Tess

Editor, Developer at Cryptheory Labs

I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com

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