XT Exchange Confirms Hack, All Crypto Withdrawals Suspended

XT Exchange, a 23rd-ranked centralized crypto exchange, is hacked and lost crypto worth more than $1.7 million. Following the breach, the exchange has suspended all coin withdrawals, citing wallet upgrades. Blockchain security firm PeckShield reports that hackers have converted the stolen funds to Ethereum.

XT Exchange Hack: $1.7 Million in Crypto Stolen

On November 28, PeckShield reported a security breach on XT Exchange. The hacker reportedly stole approximately $1.7 million worth of cryptocurrencies and converted them into 461.58 ETH. The stolen funds now sit in the hacker’s wallet, identified as 0xB43f…8F83.

#PeckShieldAlert Our community member has detected that @XTexchange appears to have been hacked for ~$1.7 million worth of cryptos.
The hacker has swapped the stolen funds for 461.58 $ETH & sit in 0xB43f…8F83 pic.twitter.com/bwINPguXlZ

— PeckShieldAlert (@PeckShieldAlert) November 28, 2024

In response, XT Exchange confirmed the suspension of all withdrawals, claiming wallet upgrades and maintenance as the reason. This sudden move has left users frustrated, especially as the exchange has yet to provide a detailed timeline for resuming withdrawals.

“XT detected an abnormal transfer from our platform wallet. Rest assured, this will not affect our users. We always maintain reserves 1.5x greater than user assets to ensure maximum security.”

The team is investigating and plans to launch the Merkel Tree Asset Proof System for even greater transparency. The crypto community members flagged the breach as part of a growing trend in centralized cryptocurrency exchange hacks.

Recurring Hacks in the Crypto Space

The XT Exchange hack is the latest in a series of attacks targeting centralized platforms. Earlier this year, another prominent exchange, Mixin Network suffered a breach of $200 million, causing widespread panic. Such incidents raise concerns over the security of centralized exchanges, where large volumes of user funds are pooled.

These recurring hacks highlight the importance of robust security protocols and risk management for crypto platforms. Experts urge users to avoid storing significant funds on centralized exchanges and consider self-custody solutions, such as hardware wallets.

XT Exchange has now joined the list of hacked exchanges. While it suspended withdrawals for wallet upgrades, users remain skeptical. Many in the crypto community are calling for transparency from the exchange to understand the scope of the breach and recovery efforts.

This incident highlights the ongoing security challenges in the crypto industry. Recently, Upbit South Korea’s largest exchange, reimbursed 8.5 billion won ($6.07 million) to 380 victims of voice phishing.