Amidst the intensifying wave of hacker attacks in recent years, security risks such as wallet private key leaks, phishing and social engineering, infrastructure API vulnerabilities, and DeFi contract flaws have emerged one after another, putting the security capabilities of crypto platforms under unprecedented scrutiny. In the first half of 2025 alone, the crypto industry experienced a record number of security incidents, resulting in cumulative losses exceeding $2.47 billion, already exceeding the total for the entire year of 2024. As attacks become increasingly specialized and organized, exchanges' security capabilities have shifted from a competitive advantage to a survival barrier.

In the entire crypto-financial ecosystem, CEXs (centralized exchanges) are the first entry point for users and the core trading hub. However, as trading scale continues to expand, CEXs have gradually become a key target for hackers, making asset security a top priority.

Statistics show that from January 2012 to February 2024, a total of 148 hacking incidents occurred on cryptocurrency exchanges worldwide, resulting in cumulative losses exceeding $11 billion. In February of this year, the industry was shaken again when an attack orchestrated by the hacker group Lazarus resulted in a loss of $1.4 billion to a major exchange, setting a record for the largest single theft in crypto history. This incident further exposed deep-seated issues in the industry regarding the evolution of attack methods, the fragility of defense systems, and cross-platform coordinated response mechanisms.

Under the dual pressures of tightening regulations and frequent attacks, Huobi HTX Global Advisor Justin Sun once said: "User asset security is the lifeline of Huobi HTX." While the industry is still groping forward under the shadow of hackers, Huobi HTX's practice may point the way forward: true security begins with technology, is achieved through transparency, and ends with trust.

As one of the world's leading cryptoasset service platforms, HTX consistently enhances internal transparency and self-regulation while strengthening its external risk control and security systems. This comprehensive approach to security has distinguished HTX from competitors and earned it widespread trust from users and the market.

According to Kaiko's Q2 2025 exchange rankings, Huobi HTX excelled in security, compliance, and other areas, climbing into the top eight globally and becoming one of the fastest-improving exchanges in the top ten. This achievement is a testament to Huobi HTX's continued commitment to security and trust.

Continuously upgrade the security system to create a "three-in-one" protection network

As attack methods continue to evolve, each breakthrough can instantly threaten the assets of thousands of users, making security attacks and defenses a protracted battle. Huobi HTX continuously upgrades and restructures its internal security systems to comprehensively safeguard user assets and platform operations.

In the first half of this year, Huobi HTX created a "three-in-one" protection framework , working together from the three levels of risk control, operations, and security intelligence (public opinion) to create a multi-dimensional and three-dimensional defense system:

The first "firewall" of Huobi HTX's security system is its independently developed real-time risk control rules engine, which responds in milliseconds. This engine, coupled with a comprehensive platform business chain monitoring and alerting system, enables instant filtering and identification of key user behaviors. For key operations such as login, withdrawal, and trading, if unusual patterns are observed, the system triggers risk control rules within milliseconds for interception or secondary verification. This mechanism aligns with the defense-in-depth strategy currently adopted by top fintech companies, significantly reducing the risks of account theft, asset transfer, and malicious transaction manipulation. Notably, Huobi HTX also incorporates artificial intelligence and big data analytics to assist in risk control decision-making. Using machine learning models to identify suspicious behavior patterns, Huobi HTX continuously optimizes its rule base, enabling the system to evolve. This reflects the industry's trend of evolving from traditional "rules-driven" risk control to "data and AI-driven" intelligent risk control.

In addition to its technical defenses, Huobi HTX has established a 24/7 security operations and customer service response team as a crucial complement to its security system. When the monitoring system issues a risk control alert or a user reports a security incident, the operations team is able to intervene immediately, providing immediate response and timely resolution. For example, if a user's account is found to have potentially experienced unauthorized logins or unusual operations, the customer service team will proactively contact the user to verify and, if necessary, freeze the relevant operations until the risk is resolved. This "human-machine" operational mechanism ensures a closed-loop risk event handling process: from discovery to response to resolution to feedback, with dedicated personnel following up at every step, minimizing the impact of security incidents.

However, facing increasingly specialized and professional hacker groups, Huobi HTX understands that a single-handed attack is not a sustainable solution. Therefore, it places great emphasis on building an external security partnership network. The platform maintains close communication and collaboration with leading industry security firms, blockchain projects, and other major exchanges, establishing a cross-platform "joint defense and control" mechanism. When major security incidents occur or new attack methods are discovered within the industry, Huobi HTX is able to rapidly acquire intelligence and respond simultaneously. This public opinion security system provides Huobi HTX with a second "firewall," extending its security defenses beyond its own operations to the broader industry-wide joint defense network.

By leveraging the collaborative operation of these three security systems, Huobi HTX has achieved significant advancements in its protection capabilities across all levels, including accounts, funds, and information. This series of technological and system upgrades is undoubtedly a significant milestone in Huobi HTX's security development, empowering the platform with greater resilience and transparency to mitigate risks.

In fact, in recent years, Huobi HTX has been implementing a multi-layered risk control system and advanced technologies to safeguard user assets and address evolving security threats. For example, Huobi HTX has implemented multi-device login and remote login reminders. Furthermore, it combines 24/7 risk inspections with AI-powered early warning mechanisms to form a closed-loop "system-process-operation" framework. Regarding asset custody, the platform utilizes a multi-tiered hot/warm/cold wallet architecture, with cold wallets holding the majority of assets to ensure both fund security and liquidity.

At the same time, Huobi HTX is also actively adopting and developing emerging technologies and expanding security cooperation. For example, it connects with Fireblocks' Off Exchange solution, uses MPC technology to reduce single-point private key risks, and expands cooperation with custody vendors such as BitGo to support off-chain custody, intra-exchange transactions and extra-exchange settlement, thereby further improving the robustness and transparency of fund management.

It can be seen that behind every asset flow, there is a rigorous protection system in operation. Although Huobi HTX's security system has made great progress, the security offense and defense of the entire industry remains a long-term battle. Attack methods continue to escalate, extending from technical vulnerabilities to social engineering and impersonation of officials.

Data demonstrates protection strength, taking the lead in using the PoR mechanism to strengthen internal security

In the crypto world, "Trust, but verify" isn't just a motto; it's a necessity. Huobi HTX understands this principle well, being one of the first exchanges in the industry to implement Proof of Reserves (PoR) . As early as November 2022, when the FTX incident triggered a crisis of trust in the industry, HTX (then known as Huobi) was the first to announce the introduction of a Merkle Tree Proof of Reserves mechanism, regularly disclosing the platform's assets and liabilities to users.

As of now, Huobi HTX has been updating its reserve proof data every month for 36 consecutive months.

Huobi HTX publishes its asset reserve proof data as of the first of each month on the "Asset-Reserve Proof Report" page on its official website. To ensure the transparency and credibility of these proofs, Huobi HTX has publicly released a Merkle verification tool and primary wallet address on its official page. Users can verify their own account nodes and compare their wallet balances on a blockchain explorer. Furthermore, Huobi HTX uses signatures and other methods to verify that these addresses are under the control of the platform, ensuring that the reserve data can be independently verified.

These initiatives have made Huobi HTX one of the few exchanges in the industry to achieve comprehensive, open-source verification of reserve data, wallet ownership, and on-chain holdings. In other words, Huobi HTX doesn't require users to blindly trust the data it discloses, but instead provides tools for users to verify it themselves.

Huobi HTX also strives to be professional and efficient in PoR operations.

Huobi HTX announced an upgrade to its Proof of Reserve (PoR) data storage architecture in the first half of 2025. This upgrade will ensure more stable processing of massive asset data, faster queries, and easier access to historical proof reports. This demonstrates that Huobi HTX isn't content with merely publishing a few figures, but has instead invested in building a comprehensive backend system to support the regular operation of PoR. Monthly reserve audits require the aggregation of balance snapshots across multiple chains and wallets, presenting both technical and management challenges.

Huobi HTX's practice demonstrates a mutually reinforcing relationship between reserve transparency and external risk control systems. On the one hand, PoR, as a manifestation of internal financial transparency, prevents exchanges from misappropriating user assets, fundamentally eliminating user asset black holes caused by misappropriation and misallocation of funds, as in the case of FTX. The platform's readily accessible proof of reserves provides users with a powerful tool for oversight, forcing platforms to maintain sufficient reserves at all times.

This internal self-regulatory mechanism effectively provides passive protection for user assets. On the other hand, PoR cannot prevent external risks like hacker theft, so a comprehensive external risk control system is still needed to safeguard asset security. Therefore, it is precisely this combination of internal transparency and external protection that allows Huobi HTX to build a solid security fortress.

Security remains a long-term battle

In the crypto industry, there's no one-size-fits-all security solution. As attack methods evolve, defense systems must also continually iterate.

Looking back at Huobi HTX's security development, it's clear that its focus has always been on two key words: transparency and risk control. The former encompasses the platform's commitment to its own behavior and commitment to its users, while the latter represents its proactive response and defense against external threats. Only when both internal transparency and external security are in place can user assets be more securely protected.

As the saying goes, "Trust is good, but control is better." Huobi HTX is striving to build the strongest fortress in an area where trust is most scarce. Every data update, every risk control optimization, and every swift response to a security incident reflects Huobi HTX's commitment to the industry's security ecosystem and its dedication to its users as a leading exchange.

Security construction is never achieved overnight, but is a long-term battle that requires continuous investment and iterative improvement.