XT Exchange assures users after $1.7 million asset theft disrupts services

XT Exchange has suspended all coin withdrawals after it confirmed the “abnormal transfer of assets” from its platform.

In a Nov. 28 announcement, the firm revealed that about $1 million worth of assets in 12 different currencies was affected. It 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.”

Blockchain security platform Peckshield first reported the incident. The security firm reported that XT suffered a $1.7 million exploit, and the attacker has allegedly swapped the stolen assets for 461.58 ETH, valued at approximately $1.66 million at current rates.

XT is a Seychelles-based crypto trading platform with approximately $147 million in reserves and has reported a 24-hour trading volume of $3.1 billion, according to CoinMarketCap data.

XT response

XT claimed that the impacted funds involved in the breach belonged to it and assured users their assets were unaffected.

It said:

“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.”

The firm plans to launch the Merkel Tree Asset Proof System in mid-December to enhance transparency and security.

Meanwhile, XT suspended all coin withdrawals, citing wallet upgrades and maintenance. The firm did not provide a clear timeline for when withdrawals would be reactivated.

Increasing CEXs hack

This incident adds to a growing list of centralized exchange (CEX) hacks in 2024.

Earlier this month, UAE-based exchange M2 lost $13.7 million in a breach. Other recent attacks include a $305 million exploit of Japan’s DMM Bitcoin platform, a $235 million hack on India’s WazirX in July, and a $20 million breach of Indonesia’s Indodax exchange.

The rise in CEX hacks illustrates the ongoing need for more robust security measures within the crypto industry.