On November 28, 2024, cryptocurrency exchange XT.com suspended all withdrawals after an attack that led to the theft of approximately $1.7 million in digital assets.
Initially, the Dubai-based exchange, which has a daily trading volume of $3.4 billion, cited “upgrade and maintenance” as the reason for the outage.
See more: Cryptocurrency exchange in India hacked
However, the security breach was first reported by blockchainPeckShield, which detected an “anomalous transfer” from XT.com wallets. According to PeckShield’s analysis, the hacker quickly transferred the stolen funds to 461.58 Ether (ETH), worth approximately $1.7 million at the time of the incident.
The converted assets were transferred to an Ethereum that was also detected by the security firm. XT.com later acknowledged the incident, confirming the existence of an “anomaly of assets transferred from the platform’s wallets.”
Read more: "Researchers" stole 3 million in crypto from Kraken
In an official statement, XT revealed that approximately 1 million USDT in 12 different cryptocurrencies were affected by the breach. Despite the severity of the situation, XT.com assured users that their assets remain safe. The exchange expressed its commitment to user protection, stating:
“Since its inception, XT.COM has adopted a user-centric philosophy, implementing strict and organized capital management practices, with a priority on the safety of users. We have secured reserve funds 1.5 times larger than those of our clients.”
The XT.com technical team is currently conducting an urgent investigation into the incident. To enhance transparency and security, the exchange plans to launch a Merkel Tree Proof of Asset System in mid-December, aiming to provide users with greater certainty about the safety of their funds.
See more: Scammers target Telegram users and steal Toncoins
This incident adds to the ever-growing list of security hitting centralized cryptocurrency exchanges in 2024, highlighting the industry's ongoing vulnerabilities and the need for increased security measures.
As the situation continues to evolve, XT.com has yet to provide a clear timeline for the resumption of withdrawals. The cryptocurrency community remains on alert, with many calling for greater transparency from XT.com regarding the scope of the breach and recovery efforts.
Source: cybersecuritynews
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