XT Exchange Experiences an Abnormal Fund Transfer; Confirms Hack

XT Exchange Tells Users To Rest Assured amid Ongoing Investigation

XT Exchange Suspends All Crypto Withdrawals amid a $1.7 Million Hack

XT Exchange holds the 23rd rank among all centralized crypto exchanges. It has recently confirmed getting hacked, losing over $1.7 million. As a consequence, the exchange has suspended all crypto withdrawals and cited wallet upgrades as the reason. As per Blockchain security firm PeckShield, the hackers carried out the breach and converted the stolen funds to Ethereum, amounting to 461.58 ETH which now sit in the wallet of the hacker.

XT Faces the Situation Boldly, Ensures security of User Assets

Users, obviously, are left frustrated. The exchange has not yet given a timeline for resuming withdrawals. However, XT has asked its users to rest assured and not panic, as it claims to maintain reserves 1.5 times greater than its user assets for maximum security.

Investigation On-going

The breach is being investigated after the abnormal transfer was detected from the platform’s wallet. They hold plans to launch the Merkel Tress Asset Proof System to increase transparency, while the community flags the breach as a growing trend in the centralized cryptocurrency exchange.  

Past Incidents of Hacks

Recently, Mixin Network, a prominent exchange, suffered $200 million breach, whereas Upbit, South Korea’s largest exchange, ended up reimbursing 8.5 million won ($6.07 million) to its 380 victims of voice phishing.

XT Exchange Brief

XT.com’s been trading $3.4 million daily. It was established in 2018 and is registered in Seychelles. It facilitates trading over 1,000 digital currencies.

A Call for Stronger Security Measures

The XT Exchange is the latest in the list of targeted centralized platforms. Panic is obvious where users pool a large volumes of funds. Such recurring incidents emphasize the urgency of bringing robust security protocols and practicing more efficient risk management. Experts also urge the users to give preference to hardware wallets for the storage of significant funds, when using centralized exchanges, and also consider other self-custody solutions to manage such situations better. Users are now expecting recovery efforts from the exchange.