HTX Calls for Crypto Exchanges to Improve Security and Transparency

Dear industry partners and clients,

The entire crypto industry is in the middle of the most severe trust crisis we have seen in years. In the face of doubts and uncertainties in the wake of the FTX fallout, solidarity is what our industry needs the most to weather this crisis. Before we can emerge from this crisis intact, what all crypto exchanges should do is demonstrate to everyone how we are protecting our users' asset security.

As the world's top virtual asset trading platform with zero major security incidents since our founding nine years ago, HTX is experienced and well-positioned to address security issues including bank runs. To help overcome this trust crisis faced by our fellow industry partners and to promote the long-term development of the industry, we are now calling for all crypto exchanges to improve security and transparency together by adopting the following measures:

1. Always put the security of our users' assets first. Every crypto exchange should prioritize this principle over anything else. It has been HTX's top priority to protect our users' assets. Meddling with our users' assets is a red line that we will never cross.
2. Ensure that the assets of our users are fully redeemable. We should always guarantee the rights and interests of our users to safely deposit and withdraw their assets anytime and anywhere without restrictions, and we should always adhere to our commitment to guarantee full redemption for our users.
3. Always guarantee the security of our wallet's private key and maintain the security of our assets right from its source. In terms of asset storage, HTX wallet uses multi-signature and threshold signature technology to ensure the security of the private key signature process, multi-person and multi-site backup to ensure the availability of private keys, and self-developed security hardware to ensure the robustness of storage.
4. Periodically perform Merkle Tree Proof of Reserves audits. In early October 2022, About Capital buyout fund completed the acquisition deal and became the majority shareholder of HTX. During the due diligence and takeover process, HTX already performed a Merkle Tree Proof of Reserves audit. Going forward, HTX will disclose our technical solutions and open source codes to the whole industry. Meanwhile, we are willing to provide technical consultations to any exchanges who are preparing to embark on Merkle Tree Proof of Reserves audit. Currently, we are working to perform another Merkle Tree Proof of Reserve audit with a third party within 30 days.
5. Adhere to the principle of "Community First, Users First". We always guarantee the interests of our users and listen to the voices of our community. As one of the first responders of the FTX incident, HTX and Tron DAO acted together and announced the redemption of HT and Tron tokens on the FTX platform at a 1:1 ratio to fully protect the interests of HT and Tron token holders. At present, we are maintaining close communication with FTX to accelerate the redemption efforts.

HTX's strong security and risk control capabilities have always been our source of pride since our founding nine years ago. As a top trading platform with a long history and an excellent security track record, HTX has set an industry record of facilitating the redemption of user assets worth tens of billions of dollars when we were discontinuing services in some countries and regions in compliance with local regulations, ensuring the security of our users' assets and protecting their rights and interests throughout the whole process. We call for all actors and players in the industry to improve security and transparency which are the cornerstones for our industry to survive and thrive in the future.

HTX

November 12, 2022

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HTX reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and HTX makes no recommendations or guarantees in respect of any virtual asset, product, or promotion on HTX. Prices of virtual assets are highly volatile and trading virtual assets involves risk. Please read our Risk Reminder text here.