XT Exchange Loses $1.7 Million Worth of Crypto to Hackers
Rising Threats to Centralized Cryptocurrency Exchanges: XT Exchange Loses $1.7 Million in Hack, Suspends All Coin Withdrawals.
On November 28, XT Exchange, ranked as the 23rd-largest centralized cryptocurrency exchange on CoinGecko, reportedly suffered a hack that caused it to lose over $1 million worth of crypto assets in its custody.
Shortly after the hack, the exchange suspended all coin withdrawals citing wallet upgrades and maintenance as the reason. This sudden move has left many users frustrated, especially as the exchange is yet to provide a detailed timeline for resuming withdrawals.
Blockchain security firm PeckShield revealed that hackers targeted XT Exchange, stealing cryptocurrencies worth $1.7 million. The stolen assets were quickly converted into 461.58 ETH, which now sits in the hacker’s wallet, identified as 0xB43f…8F83 according to the platform.
XT Exchange Response
XT Exchange responded to the breach with an official statement acknowledging the hack and reassuring users of the safety of their assets.
“Today, XT.COM identified an abnormal transfer of assets from the platform wallet with the on-chain address 0xdb3ded7731c781224ec292e2163d9554c094fd7c. Our technical team is currently conducting an urgent investigation,” the statement reads, adding that the total amount lost to the incident was approximately $1 million USDT across 12 different currencies.
XT Exchange assured users their assets are safe and secure despite the breach, emphasizing the platform, not customers, lost those assets. The exchange also pledged its commitment to user asset protection, highlighting that it maintains reserve funds 1.5 times greater than the total user holdings.
Additionally, they also unveiled plans to launch a Merkel Tree Asset Proof System in December to further enhance transparency and security.
CEXs Hacks on the Rise
The XT Exchange breach throws light on the growing trend of attacks targeting centralized cryptocurrency exchanges. Hackers are increasingly exploiting vulnerabilities in these platforms, walking away with billions of dollars in crypto assets each year.
Centralized exchanges are attractive targets due to their centralized nature, which often involves pooling large amounts of user funds in hot wallets. This centralization, although convenient for users, creates a single point of failure that hackers can exploit.
On July 18, 2024, a hacker absconded with a staggering $230 million from WazirX, an Indian cryptocurrency exchange. This audacious heist now stands as the second-largest cryptocurrency hack of 2024.
