XT Exchange has suspended all cryptocurrency withdrawals due to a hacking incident, resulting in a loss of $1.7 million. Please check for details. The 23rd-ranked centralized cryptocurrency exchange XT Exchange was hacked, losing cryptocurrency worth over $1.7 million. Following the attack, the exchange suspended all token withdrawals due to wallet upgrades. Blockchain security firm PeckShield reported that the hackers converted the stolen funds into Ethereum.
XT Exchange Hacked: $1.7 Million in Cryptocurrency Stolen
On November 28, PeckShield reported a security vulnerability at XT Exchange. It was reported that hackers stole approximately $1.7 million worth of cryptocurrency and exchanged it for 461.58 ETH. The stolen funds are currently held in the hackers' wallet, with the wallet number 0xB43f…8F83.
In response, XT Exchange confirmed the suspension of all withdrawals and claimed the reason was wallet upgrade maintenance. This sudden move has frustrated users, particularly as the exchange has yet to provide a detailed timeline for when withdrawals will be restored.
"XT detected abnormal transfers in our platform wallet. Please rest assured that this will not affect our users. We always maintain a reserve that is 1.5 times higher than user assets to ensure maximum security."
The team is investigating and plans to launch a Merkle tree asset proof system to enhance transparency. Members of the crypto community have stated that this breach is part of an increasing trend of hacking incidents targeting centralized cryptocurrency exchanges.
Repeated hacking incidents in the cryptocurrency space
The hacking of XT Exchange is the latest in a series of attacks targeting centralized platforms. Earlier this year, another well-known exchange, Mixin Network, suffered a loss of $200 million, causing widespread panic. Such incidents raise concerns about the security of centralized exchanges, where large amounts of user funds are concentrated.
These recurring hacking incidents underscore the importance of robust security protocols and risk management for crypto platforms. Experts urge users to avoid storing large amounts of funds on centralized exchanges and to consider self-custody solutions like hardware wallets.
XT Exchange has now joined the list of exchanges that have been hacked. Although it has suspended withdrawals due to wallet upgrades, users remain skeptical. Many in the crypto community are calling for the exchange to maintain transparency to understand the extent of the breach and the recovery efforts.
This incident highlights the ongoing security challenges in the cryptocurrency industry. Recently, South Korea's largest exchange Upbit compensated 380 victims of voice phishing with 8.5 billion KRW ($6.07 million).
