Abnormal Asset Transfer Confirmed
XT Exchange has temporarily suspended all coin withdrawals following the discovery of an “abnormal transfer of assets” from its platform. The announcement, made on Nov. 28, disclosed that assets worth approximately $1 million in 12 different currencies were impacted.
The company revealed:
“[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.”
Details of the Exploit
Blockchain security platform Peckshield first reported the breach. According to the firm, XT Exchange suffered a $1.7 million exploit. The attacker reportedly converted the stolen funds into 461.58 ETH, valued at around $1.66 million based on current rates.
Platform Overview
XT Exchange operates out of Seychelles, holding approximately $147 million in reserves. CoinMarketCap reports that the platform recorded a 24-hour trading volume of $3.1 billion.
XT’s Response to the Incident
Assurances to Users
XT confirmed that the affected funds belonged solely to the platform and assured users that their assets remained secure.
The exchange stated:
“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.”
Planned Transparency Measures
To enhance security and transparency, the exchange announced plans to introduce the Merkel Tree Asset Proof System by mid-December.
Withdrawal Suspension
All coin withdrawals remain temporarily suspended due to ongoing wallet upgrades and maintenance. However, XT has not provided a specific timeline for reactivating this service.
Surge in Centralized Exchange (CEX) Hacks
The XT Exchange incident adds to the growing number of centralized exchange breaches in 2024.
- Earlier this month, UAE-based M2 Exchange reported a $13.7 million loss.
- Japan’s DMM Bitcoin suffered a $305 million hack.
- India’s WazirX experienced a $235 million exploit in July.
- Indonesia’s Indodax lost $20 million in another attack.
Call for Stronger Security
These recurring incidents underscore the urgent need for more robust security measures across the cryptocurrency industry to safeguard user assets effectively
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