Seychelles-based crypto exchange with a daily trading volume of $3.15+ billion, XT Exchange, has halted withdrawals. It happened after they were attacked by hackers who stole $1.7 million.
The hack is a new cause of concern regarding the security of crypto exchanges. Even though XT has sought to reassure users that their funds are safe.
The breach was first reported by blockchain security firm PeckShield. They pointed out that unauthorized transactions originated from the wallet structure of XT.
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According to updates, the attacker quickly liquidated the stolen resources. They obtained 461.58 ETH in a wallet with the address “0xB43f.”
The community vigilance was also instrumental since immediately blockchain enthusiasts pointed at potential issues.
XT Exchange Reacts: Assurances Amid Uncertainty
In an effort to contain the situation, XT Exchange acknowledged the breach. They assured users that their funds weren’t compromised.
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The platform highlighted its reserve assets are 1.5 times higher than the users’ deposit to prove the company’s solvency to the attacks.
XT declared the plan to deploy the Merkle Tree Asset Proof System in December, 2024. This system seeks to increase transparency through an independent way in which the users will be able to confirm the stated reserves, a move that comes as the sector increases the calls for accountability.
Being one of the leading companies operating in the cryptocurrency market, spot trading volume daily at XT Exchange is over $3.15 billion.
The issue is that XTs initial public statement demonstrates an organization level of preparedness, however the breach illustrates the current difficulties that centralized exchange faces when it comes down to protecting platforms from advanced attackers.
This is a wake-up call for not only exchanges but users as well of the necessity of surveillance when dealing in the crypto space. I can appreciate the fact of XT reserves and the ‘upcoming’ proof-of-reserves system as evidence but it does little to help explain that a lot of money went into the hacker’s wallet.
A Wake-Up Call for the Industry
Hacks,rug pulls and frauds are not a rare phenomenon in the sphere of cryptocurrencies. According to a survey conducted by 5Money and Storible, found that American founders are associated with 43% scam crypto projects and 33% global dead projects.
Radiant Capital was attacked in October 2024, losing $50 million. Hackers took over three of 11 multisig wallet keys by infiltrating malware into three of the smart contracts, siphoning funds from Binance BNB Chain and Arbitrum into Ethereum.
In September 2024, BingX lost $52M after attackers breached its hot wallets on Ethereum, Binance Smart Chain, and Avalanche. The stolen assets, including ETH and USDT, were laundered via decentralized exchanges. BingX assured users of compensation and tightened security.
WazirX was hit by hackers that stole $230 million in July 2024 due to a vulnerability in the multisig wallet. Assets stolen include SHIB tokens, ETH, and MATIC. The exchange halted withdrawal access, committed to compensating users and cooperated with law enforcement to track the funds.
