Cryptocurrency exchange XT.com temporarily suspended withdrawals after falling victim to a cyberattack, resulting in the theft of $1.7 million worth of digital assets.
Hack Details and Response
The hack was flagged by blockchain security firm PeckShield, which identified suspicious activity related to XT.com's wallet. The stolen funds were converted into 461.58 Ethereum (ETH) and transferred to an external wallet. XT.com acknowledged the abnormal transfer and emphasized that user funds were not affected. The company plans to investigate thoroughly and introduce a Merkel Tree Asset Proof System in December to enhance transparency.
The Broader Impact on Cryptocurrency Exchanges
This breach is part of a growing trend of cyberattacks on crypto exchanges. In September 2024, other exchanges like BingX and Indodax also faced hacks with losses of $43 million and $22 million, respectively. Despite this, 2024 saw a 19.6% decrease in illicit activities across cryptocurrency markets according to Chainalysis.
XT Exchange’s Position in the Market
Launched in 2018 and registered in Seychelles, XT.com offers trading for over 1,000 digital currencies. Its daily trading volume is $3.1 billion, with reserves around $47.7 million. Interestingly, the XT token saw a 7% increase in value, attributed to limited trading on other platforms.
The cyberattack on XT.com highlights the critical importance of security in the crypto sector, especially amidst a general decline in illicit activities.
