HTX global adviser Justin Sun said the exchange has created a secure asset fund for users (SAFU) following the $7.9 million exploit of its hot wallet on Sept. 24.

SAFU serves as a financial safety net earmarked to reimburse investors in the unfortunate event of asset losses resulting from hacks or other unforeseen incidents on cryptocurrency exchanges, which lead to the loss of user-owned assets.

In a Sept. 26 post on X(formerly Twitter), Sun revealed that the fund would cater to losses resulting from the platform security issues. He added that the exchange has implemented real-time monitoring mechanisms to prevent such losses.

Sun did not provide additional information about the fund. HTX has yet to respond to CryptoSlate’s request for additional commentary on the fund’s composition as of press time.

On Sept. 25, Sun confirmed that the exchange suffered a hack that resulted in a $7.9 million worth of Ethereum (ETH) loss. HTX offered 5% of the stolen amount ($400,000 ) as a reward to encourage the hacker to return the stolen funds, adding that the hacker would be hired as a security white hat advisor if the fund is returned.

Sun assures of HTX security

Sun further reiterated HTX’s security measures in the post on the social media platform X. He added that the platform “always prioritizes the security of user assets.”

“Our multi-backup, multi-signature cold wallet system ensures 100% security,” Sun said. “Security is an ongoing commitment, and we will continually update and iterate on security measures to ensure that our users’ assets remain the safest in the industry.”

Data from DeFillama shows that HTX holds about $2.77 billion worth of digital assets, including Tron (TRX), Bitcoin (BTC), Ethereum, and others.

The post HTX launches SAFU fund following $7.9 million Ethereum loss appeared first on CryptoSlate.

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Filed under: Bitcoin - @ September 26, 2023 12:00 pm