XT Exchange has recently suspended all coin withdrawals due to the confirmation of an “abnormal transfer of assets” from its platform.
In a recent announcement on Nov. 28, the company disclosed that approximately $1 million worth of assets in 12 different currencies was affected. The firm stated:
“[We] identified an abnormal transfer of assets from the platform wallet with the on-chain address 0xdb3ded7731c781224ec292e2163d9554c094fd7c. Our technical team is currently conducting an urgent investigation. The amount involved in this incident is approximately 1 million USDT across 12 different currencies.”
Peckshield, a blockchain security platform, was the first to report the incident. According to their findings, XT Exchange suffered a $1.7 million exploit, with the attacker exchanging the stolen assets for 461.58 ETH, valued at around $1.66 million at current rates.
XT Exchange, based in Seychelles, holds approximately $147 million in reserves and has reported a 24-hour trading volume of $3.1 billion, according to CoinMarketCap data.
Response from XT Exchange
XT Exchange has clarified that the funds affected by the breach belonged to the company itself, ensuring users that their assets are secure and unaffected.
They stated:
“Since inception, XT Exchange has always prioritized user asset security, maintaining strict and standardized platform fund management. We have reserves 1.5 times greater than those of our users on the exchange.”
The company plans to introduce the Merkel Tree Asset Proof System in mid-December to improve transparency and security measures.
Meanwhile, all coin withdrawals on XT Exchange have been temporarily suspended for wallet upgrades and maintenance, with no specific timeline provided for reactivation.
Rise in CEX Hacks
This incident adds to the increasing number of centralized exchange (CEX) hacks in 2024.
Recent breaches include a $13.7 million loss by UAE-based exchange M2, a $305 million exploit on Japan’s DMM Bitcoin platform, a $235 million hack on India’s WazirX, and a $20 million breach on Indonesia’s Indodax exchange.
These events highlight the urgent need for stronger security measures within the cryptocurrency industry.
