HECO Network to Cease Operations a Year After $87M Hack

The HECO Network, Huobi’s (now HTX) Layer 1 blockchain, will officially retire on January 15, 2025, according to a recent announcement. 

As part of the shutdown process, users with HRC20 assets like HRC20ETH, HRC20TUSD, HRC20LINK, and others will need to take specific steps to secure their holdings before the final closure.

HECO, or Huobi Eco Chain, launched by the cryptocurrency exchange Huobi, is designed to offer high-performance blockchain solutions with a focus on DeFi and decentralized applications (dApps). The blockchain has gained attention for its lower transaction costs and fast processing times, making it a popular choice for developers and investors. 

Key Deadlines for Users Holding HRC20 Tokens

Users holding HRC20 assets must take action before the retirement date. By January 10, 2025, these users must deposit their assets into designated addresses on the official HecoDAO website. 

To ensure smooth redemption, users must provide their TRON network addresses when depositing their HRC20 assets. The tokens will then be distributed to the specified addresses after the calculation process is complete.

The assets will be converted into points based on their market value on November 10, 2024, with each 1 USDT equivalent translating into 1 point.

Once the assets are deposited and converted into points, users will be able to redeem these points for HTX, the native cryptocurrency of the Huobi ecosystem. The conversion rate is capped at 200,000 HTX for each point, and the distribution of these tokens will begin on January 15, 2025. The distribution process will occur over 12 monthly payments, giving users time to receive their allocated HTX tokens.

Security Concerns and Past Incidents

In 2023, the HECO chain bridge was targeted in a hack that drained over $87 million in assets, including large amounts of ETH, Tether (USDT), and HBTC. These assets were sent to an Ethereum wallet and further distributed to multiple other wallets.

Blockchain security firms, including CertiK, PeckShield, and Cyvers, analyzed the attack and found that the breach likely occurred due to a compromised private key. The attack affected HTX’s hot wallets, leading to the loss of funds. 

In response, Justin Sun, the controlling figure behind Huobi and the HECO ecosystem, confirmed that HTX would fully compensate users for the stolen funds.