Cryptocurrency exchange XT.com, which is headquartered in Seychelles and processes more than $3.4 billion in daily trading volume, has experienced a suspected hack with total losses of $1.7 million.
Since then, the platform has paused all customer withdrawals.
Blockchain security company PeckShield disclose that the attacker converted the stolen funds into 461.58 Ether. XT.com initially said the withdrawal pause was due to wallet upgrades and maintenance. However, the exchange later acknowledged the incident and asserted that user funds were not affected. XT.com also commit that withdrawal services will gradually return from tomorrow, November 29.
“Today, XT detected an unusual transaction from our platform wallet. Rest assured, this will not affect our users. We always maintain a reserve of 1.5 times the user’s assets to ensure maximum safety. Our team is investigating and is committed to protecting your assets,” the exchange posted on X (formerly Twitter).
Founded in 2018, XT.com allows trading of more than 1,000 cryptocurrencies. According to data from CoinGecko, it is the 21st largest centralized exchange based on daily trading volume.
The amount involved in this incident is approximately 1 million USDT across 12 different currencies. These assets are owned by the platform and will not harm in any way the interests of our customers or users,” XT.com said in official statement.
Cryptocurrency Attacks Are Still Increasing Constantly
Cyberattacks continue to be a major problem for the cryptocurrency industry. Even though there have been tangible advances in smart contract security and the increase in cryptocurrency adoption, hacks are still costing millions every year.
As of September 2024, cybercriminals have stolen $2.1 billion from the industry. This is significantly higher than the $1.6 billion stolen throughout 2023. The overall value at the end of 2024 will be even higher.
In October, blockchain lending company Radiant Capital suffered its second major attack of the year, losing more than $50 million in a multi-chain exploit. Hackers have compromised a private key, allowing them to withdraw user assets through automated wallet functions.
Back in July, one of India’s largest exchanges, WazirX, suffered an attack with a loss of $235 million. The exchange offered a reward of 23 million USD for hackers to return the money, but in vain.
WazirX customers have not yet received compensation for the lost funds. Recently, Indian police arrested an individual in connection with the attack. However, the investigation is not yet closed.
The latest attack on XT.com once again shows the vulnerability of centralized exchanges to growing cyber threats.