Cryptocurrency exchange XT.com temporarily suspended withdrawals following a cyberattack on November 28 that resulted in the theft of $1.7 million in digital assets.
Hack Details and Response
The hack was identified by blockchain security firm PeckShield, which reported that the stolen funds were converted into 461.58 Ethereum (ETH) and transferred to an external wallet. XT.com acknowledged the 'abnormal transfer of platform wallet assets' and stressed that the compromised wallet did not affect user funds. The exchange has assured users that its reserve system remains intact and plans to implement a Merkel Tree Asset Proof System in December to enhance transparency and build trust.
Impact on Cryptocurrency Exchanges
This breach is part of a growing trend of cyberattacks on crypto exchanges. In September 2024, exchanges such as BingX and Indodax also suffered hacks, losing $43 million and $22 million, respectively. According to Chainalysis, overall illicit activity in cryptocurrency markets has decreased in 2024 but exchange hacks remain a major concern.
XT Exchange’s Position in the Market
Launched in 2018 and registered in Seychelles, XT.com offers trading for over 1,000 digital currencies. It boasts a daily trading volume of $3.1 billion and around $47.7 million in reserves.
Despite the hack, XT.com remains a significant player in the crypto exchange market and is taking steps to prevent future incidents.
