In a recent development on November 28, 2024, XT Exchange, a Seychelles-based cryptocurrency trading platform, faced a significant security breach resulting in the theft of assets worth approximately $1.7 million. This incident has raised concerns within the cryptocurrency community, highlighting the importance of robust security measures in digital trading platforms.
Details of the Breach
The unauthorized withdrawal of funds originated from the platform’s own wallet. The stolen assets, spanning twelve distinct categories, were valued at about one million USDT. According to blockchain security firm PeckShield, the perpetrator managed to exchange these illicitly obtained tokens for 461.58 ether, which is valued at approximately $1.66 million based on current market prices.
XT Exchange’s Response
In response to the breach, XT Exchange clarified that the compromised funds were owned by the platform itself, and assured users that their personal assets remained secure and unaffected. To address security concerns, the exchange decided to temporarily suspend all coin withdrawals, including XRP, as part of an extensive wallet upgrade and maintenance process. As of now, no specific timeline has been provided for the resumption of these services.
Reaffirming its dedication to user security, XT Exchange emphasized:
“Since starting operations, XT.COM has adhered to a user-oriented approach, strictly standardizing its platform fund management to ensure the security of user assets.”
Enhancing Transparency and Trust
In a bid to enhance transparency and restore user confidence, XT Exchange announced plans to implement the Merkel Tree Asset Proof System by mid-December. This system will enable users to independently verify asset reserves, thereby increasing trust in the platform’s security measures.
Assurances to Users
XT Exchange also highlighted its robust asset reserves, which are 1.5 times greater than the users’ balance, demonstrating the platform’s capability to withstand such security incidents. Acknowledging the importance of user trust, XT affirmed that this event reinforces its commitment to providing a secure and transparent trading environment.
Currently, XT Exchange continues to uphold its reputation for providing impenetrable security and unwavering transparency, ensuring that it remains a reliable platform for cryptocurrency trading.
