XT.com Hacked for $1.7 Million, Withdrawals Suspended for 12 Hours

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As a seasoned researcher and observer of the cryptocurrency landscape, I’ve seen my fair share of ups and downs, hacks, and heists. The recent incident at XT.com is just another chapter in this rollercoaster ride we call crypto. While it’s disheartening to see yet another exchange fall victim to cybercrime, I must admit, I’m not surprised.

In a suspected cyberattack, the cryptocurrency exchange platform XT.com, headquartered in the Seychelles and processing trades worth approximately $3.4 billion daily, is reporting a theft of around $1.7 million from its holdings.

Since then, the platform has suspended all customer withdrawals. 

XT.com Hack Reportedly Didn’t Affect Customer Funds

PeckShield, a company specializing in blockchain security, disclosed that the thief had already transformed the stolen assets into approximately 461.58 Ether. Initially, XT.com announced that they were temporarily halting withdrawals due to wallet updates and maintenance.

Today, it was noticed that an unusual transaction took place from our platform wallet. Don’t worry, this incident won’t impact our users in any way. To maintain maximum security, we keep reserves that are 1.5 times larger than user assets at all times. Our team is currently looking into the matter and we are steadfast in our commitment to safeguard your assets. This update was shared on X (previously known as Twitter).

Established in 2018, XT.com offers a platform for trading over 1,000 different digital currencies. As per CoinGecko’s statistics, it ranks as the 21st largest centralized exchange in terms of daily trading volume.

In a recent event, approximately $1 million worth of assets distributed among 12 various cryptocurrencies were affected. Notably, these digital assets belong to the platform itself, ensuring that they do not negatively impact the well-being or interests of our valued customers and users, as confirmed by XT.com in their official announcement.

Crypto Hacks Are Not Slowing Down

In the realm of cryptocurrency, cyber attacks remain a significant persistent issue. Even with progress in enhancing smart contract security and rising adoption of digital coins, annual losses due to these breaches keep growing.

By September 2024, a whopping $2.1 billion was pilfered from the industry by cybercriminals, marking a substantial increase compared to the $1.6 billion taken in all of 2023. The final tally at year’s end is expected to be even larger.

In October this year, the blockchain lending firm, Radiant Capital, experienced its second significant hack of 2021, resulting in a loss of more than $50 million due to a multi-chain attack. The perpetrators managed to breach a private key, thereby gaining control over automated wallet functions and draining user assets as a result.

In July, a significant Indian cryptocurrency exchange, WazirX, experienced a cyber attack that led to a loss of approximately $235 million. Despite promising a reward of around $23 million to encourage the hacker to restore the funds, their efforts were unsuccessful.

WazirX customers are yet to receive reimbursement for their lost funds. Recently, the Indian police arrested an individual who was linked to the hack. However, the wider investigation remains open. 

Once more, the recent hack on XT.com underscores the increasing vulnerability of centralized trading platforms to escalating cyber dangers.

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2024-11-28 20:50