A major cryptocurrency exchange, XT.com, suspended all withdrawals on November 28, 2024, following a suspected hack that resulted in the theft of approximately $1.7 million worth of digital assets.

The Dubai-based exchange, which boasts a daily trading volume of $3.4 billion, initially cited “wallet upgrade and maintenance” as the reason for the suspension.

Blockchain security firm PeckShield first reported the security breach, which detected an “abnormal transfer” from XT.com wallets.

According to reports, the hacker swiftly converted the stolen funds into 461.58 Ether (ETH), valued at about $1.7 million at the time of the incident.

The converted assets were then transferred to an Ethereum address identified by the security firm. XT.com later acknowledged the incident, confirming an “abnormal transfer of platform wallet assets”.

In an official statement, XT reported that approximately 1 million USDT across 12 different currencies was involved in the breach.

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XT Exchange Hack

Despite the severity of the situation, XT.com has assured its users that their assets remain unaffected.

The exchange emphasized its commitment to user security, stating:-

“Since inception, XT.COM has always upheld a user-centric approach, maintaining strict and standardized platform fund management while prioritizing the security of user assets. We have established asset reserve funds 1.5 times greater than those of users on the exchange.”

XT.com’s technical team is urgently investigating the incident. To enhance transparency and security, the exchange has announced plans to launch a Merkel Tree Asset Proof System in mid-December.

This system aims to give users greater assurance about their funds’ safety. This incident adds to a growing list of security breaches targeting centralized cryptocurrency exchanges in 2024.

It highlights the ongoing vulnerabilities in the crypto ecosystem and underscores the need for enhanced security measures across the industry.

As the situation continues to unfold, XT.com has not provided a specific timeline for the resumption of withdrawals.

The crypto community remains watchful, with many calling for increased transparency from the exchange regarding the scope of the breach and its recovery efforts.

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