On November 28, 2024, a significant security breach was reported at XT Exchange, a cryptocurrency trading platform based in Seychelles. This cyber incident resulted in the theft of assets valued at approximately $1.7 million, affecting the traders using the platform.
Details of the Breach
The unauthorized withdrawal of funds originated from XT Exchange’s own wallet, involving tokens from twelve distinct categories. These stolen assets are estimated to be worth around one million USDT. According to blockchain security firm PeckShield, the perpetrator converted these stolen tokens into 461.58 ether, which is currently valued at $1.66 million.
XT Exchange’s Response to the Incident
In the wake of the breach, XT Exchange clarified that the compromised funds belonged to the platform itself and assured users that their assets would remain unaffected. Due to heightened security concerns, the exchange made the decision to pause all coin withdrawals, including XRP, as they undertook wallet upgrades and maintenance. Unfortunately, no specific timeline was provided for when these services would resume.
Reaffirming its dedication to user security, XT Exchange stated: “Since starting operation, XT.COM has insisted on a user-oriented approach to strictly and standardize its platform fund management and ensure the security of user assets.”
Future Security Enhancements
To bolster credibility and enhance transparency, XT Exchange announced plans to implement the Merkel Tree Asset Proof System by mid-December. This system will allow users to verify asset reserves, thereby enhancing trust in the platform’s security measures.
Assurances to Users
XT Exchange emphasized its substantial asset reserves, which are 1.5 times the user balances, highlighting its capacity to manage such crises. The company acknowledged the significance of user trust and stated that this incident reinforces its dedication to maintaining a secure and reliable trading environment.
Moving forward, XT Exchange aims to remain steadfast in its commitment to providing robust security and unwavering transparency to its users.
