The hack forced the exchange to halt withdrawals as it investigates the situation
Cryptocurrency exchange XT.com has halted all withdrawals following a suspected hack that resulted in the theft of $1.7 million in digital assets. The platform, which reports daily trading volumes of approximately $3.4 billion, initially cited “wallet upgrade and maintenance” as the reason for the suspension. However, it later confirmed an “abnormal transfer of platform wallet assets.”
#PeckShieldAlert Our community member has detected that @XTexchange appears to have been hacked for ~$1.7 million worth of cryptos.
The hacker has swapped the stolen funds for 461.58 $ETH & sit in 0xB43f…8F83 pic.twitter.com/bwINPguXlZ— PeckShieldAlert (@PeckShieldAlert) November 28, 2024
Blockchain security firm PeckShield was among the first to report the suspected breach, noting that the stolen funds had already been converted into 461.58 Ether and transferred to an Ethereum wallet. XT.com acknowledged the issue shortly afterward, assuring users that the incident would not impact their holdings. The exchange emphasized that it maintains reserves 1.5 times greater than user assets to ensure the safety of customer funds.
Founded in 2018 and registered in the Seychelles, XT.com facilitates the trading of over 1,000 cryptocurrencies. Despite its assurances, the suspension of withdrawals has raised concerns among users, particularly in an industry often criticized for its vulnerability to cyberattacks.
In a follow-up statement on social media, XT.com stressed that the compromised funds came solely from its own reserves and that user accounts remain secure. The exchange also pledged to improve transparency by launching a Merkle tree proof of reserves by mid-December, a step designed to verify its solvency and bolster customer confidence.
This breach is the latest in a string of security incidents targeting cryptocurrency exchanges, highlighting ongoing challenges in safeguarding digital assets. While XT.com works to resolve the issue and restore operations, the incident underscores the importance of robust security measures and transparency in the evolving crypto market.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
