XT Exchange Suffers $1.7 Million Hack, Suspends Withdrawals

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Key Takeaways

  • The attack was linked to an “abnormal transfer” from the exchangeโ€™s wallet
  •  XT assured customers that the stolen funds were part of its own reserves and that user funds remained safe

Leading crypto lending platform, XT Exchange, recently reported a security breach that resulted in $1.7 million in digital assets getting drained. As per blockchain security firm PeckShield, the stolen funds were swiftly converted into 461.58 Ethereum, valued at roughly $1.66 million. The attack was linked to an “abnormal transfer” from the exchangeโ€™s wallet, affecting assets across 12 cryptocurrencies.

Following the breach, XT Exchange took to X to announce the suspension of all coin withdrawals, citing wallet upgrades and maintenance as the reason. The exchange has not provided a timeline for resuming withdrawals, leading to frustration among users. XT assured customers that the stolen funds were part of its own reserves and that user assets remain secure.ย 

โ€œRest assured, this will not affect our users,โ€ the exchange said, adding that it โ€œalways maintains reserves 1.5x greater than user assets to ensure maximum security.โ€™, the tweet reads

XT Exchange supports more than 900 cryptocurrencies and reported a 24-hour trading volume of $3.1 billion. As per CoinMarketCap, the exchange holds reserves of approximately $147 million. In light of the breach, XT has announced plans to launch the Merkel Tree Asset Proof System in December to enhance transparency and bolster user trust.

As the investigation continues, the hackerโ€™s wallet, identified as 0xB43fโ€ฆ8F83, currently holds the stolen funds. In 2024, several prominent crypto exchanges have been victims of hacks.

Earlier this year, India-based crypto exchange WazirX suffered a staggering loss of $235 million when one of its Ethereum wallets was compromised. In September, decentralised finance protocol, the Penpie suffered an exploit and was drained of $27 million.

An Immunefi report has revealed that over $1.2 billion in funds have been stolen through hacks and exploits between January and August 2024. 

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Saniya Raahath
Saniya Raahath

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