XT Exchange Halts Coin Withdrawals Due to $1.7M Security Breach
XT Exchange, which trades over $3 billion in cryptocurrency daily, has suspended all coin withdrawals due to "wallet upgrade and maintenance." This announcement follows a report from security firm PeckShield indicating that XT.com suffered a hack resulting in a loss of $1.7 million in cryptocurrency.
Hacker Swaps $1.7M Theft to Ethereum
PeckShield noted that the hacker converted the stolen funds into 461.58 ETH, which is now stored in wallet address “0xB43f…8F83.” XT Exchange acknowledged the incident as an “abnormal transfer of platform wallet assets” via a post on X.
🚨 XT Statement on Abnormal Transfer of Platform Wallet Assets 🚨
Today, XT detected an abnormal transfer from our platform wallet. Rest assured, this will not affect our users. 💪
🔒 We always maintain reserves 1.5x greater than user assets to ensure maximum security.
Our… pic.twitter.com/SdEL75PxZF
— XT Exchange (@XTexchange) November 28, 2024
XT reassured users that the incident would not impact them, citing reserves 1.5 times greater than user assets for security. The exchange is investigating the breach and plans to implement the Merkel Tree Asset Proof System by mid-December to enhance transparency and user trust.
XT Users’ Concerns and Industry Implications
Established in Seychelles in 2018, XT Exchange facilitates trading for over 1,000 digital currencies. It is among several exchanges that have faced security breaches. Despite XT's reassurances, users express dissatisfaction, with some seeking more information about when withdrawals will resume. Concerns exist regarding the potential for speculation if recovery takes too long.
The incident highlights ongoing security challenges in the crypto sector, affecting both institutions and individual users. Recent reports indicate significant losses from phishing attacks, such as a trader who lost $36 million after signing a malicious permit.