On November 28, 2024, cryptocurrency exchange XT.com, based in Dubai, was targeted in a significant cyberattack that led to the theft of approximately $1.7 million worth of digital assets. Initially, the exchange cited a “wallet upgrade and maintenance” as the reason for halting withdrawals. However, following a report by blockchain security firm PeckShield, the exchange acknowledged an “abnormal transfer” of platform wallet assets. PeckShield discovered that the hacker had stolen a total of 461.58 Ether (ETH), valued at $1.7 million at the time of the breach, and transferred the assets to a separate Ethereum address.
XT.com acted quickly in response to the attack, assuring users that their funds remained unaffected. The exchange emphasized that it had long maintained strict security measures and asset management practices, with reserves greater than users’ holdings on the platform. Despite the breach, XT.com reassured its users that its systems would continue to prioritize security, although the incident raised concerns about vulnerabilities in centralized exchanges, especially in light of the ongoing wave of crypto-related hacks in 2024.
In an effort to bolster transparency and security, XT.com’s technical team is actively investigating the breach. To further reassure users, the exchange revealed plans to launch a Merkel Tree Asset Proof System in mid-December, which aims to provide greater assurance about the safety of funds on the platform. This new system is expected to improve confidence among users and demonstrate XT.com’s commitment to enhanced security in the wake of the hack.
As the situation develops, the crypto community is closely monitoring XT.com’s recovery efforts and the impact of the hack on the broader exchange ecosystem. While the exchange has not provided a timeline for when withdrawals will be resumed, the incident serves as a stark reminder of the ongoing risks faced by cryptocurrency exchanges and the critical need for enhanced security measures to protect digital assets.
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