A cryptocurrency exchange identified as XT.com has suspended withdrawal amid rumors of a $1.7 million hack. The exchange, through an official blog post today, informed users that it had halted the withdrawal of funds due to wallet maintenance.
However, shortly after the announcement, renowned blockchain analytics firm PeckShield revealed that the exchange had suffered a $1.7 million hack. In a post via its official X page, the firm indicated that some community members noticed a strange outflow of digital assets worth $1.7 million from XT.com.
More so, PeckShield added that the hackers converted the loot to 461.58 ETH after moving the funds from the confers of XT.com.
How XT.com Responded to the Attack
The cryptocurrency exchange, through a post on X, announced that it noticed a strange movement of funds from its wallet. While XT.com didn’t confirm the attack, the exchange assured users that the fund movement would not affect their deposits.
Consequently, the cryptocurrency trading platform established that its reserve contains assets 1.5x greater than users’ deposits. By that, XT.com said it has ensured maximum security of users’ assets.
Similarly, XT.com stated that it will investigate the “strange movement of funds.” The exchange assured users that it will launch its Merkel Tree Asset Proof System by December 2024 for enhanced transparency.
Side Note on Crypto Hacks in 2024
Meanwhile, the Seychelles-based cryptocurrency exchange is the latest victim of the ongoing hack-spree in the digital assets landscape. The victory of Donald Trump at the polls triggered a massive inflow of investment into the cryptocurrency space due to the pro-Bitcoin stance of the president-elect.
This significant boost pushed BTC to an all-time high of $99,665, supporting the premier cryptocurrency near the long-predicted $100k price benchmark. Despite the increasing exodus of investors into the digital assets sector, there are concerns about the security efficiency of most cryptocurrency projects.
According to a report, the crypto market has lost more than $1.2 billion to hackers in 2024. Furthermore, crypto exchanges like DMM Bitcoin and WazirX were among the top profile victims, as the two platforms lost more than $530 million.
Aside from the hack on XT.com, hackers have stolen $640 million from centralized exchanges, which amounts to more than 50% of the total leakages the industry has endured in 2024. This figure, according to several analysts, highlights some of the significant setbacks of cryptocurrencies, urging industry leaders to collaborate to push out bad actors.
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