$1.7 Million Stolen, User Withdrawals Suspended

XT.com, a Seychelles-based crypto exchange handling over $3.4 billion in daily trading volume, has experienced a suspected hack involving $1.7 million. 

Since then, the platform has suspended all customer withdrawals. 

Blockchain security firm PeckShield revealed that the attacker had already converted the stolen funds into 461.58 Ether. XT.com initially said withdrawals were suspended due to wallet upgrades and maintenance.

However, the exchange has since acknowledged the incident and stated that user funds were not affected. XT.com also assured users that withdrawal services would gradually resume starting tomorrow, November 29.

“Today, 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. Our team is investigating, and we remain committed to protecting your assets,” the exchange posted on X (formerly Twitter).

Founded in 2018, XT.com allows trading for more than 1,000 cryptocurrencies. According to CoinGecko data, it’s 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 in any way harm the interests of our customers or users,” XT.com said in official statement.

Crypto Hacks Are Not Slowing Down

Cyber attacks continue to be a major pain point for the crypto industry. Despite notable advancements in smart contract security and increasing crypto adoption, hacks continue to rack up millions every year. 

By September 2024, cybercriminals had stolen $2.1 billion from the industry. This is significantly higher than the $1.6 billion stolen throughout 2023. The overvall value by the end of 2024 will be much higher. 

In October, blockchain lender Radiant Capital suffered its second major attack of the year, losing over $50 million in a multi-chain exploit. Hackers compromised a private key, enabling them to drain user assets through automated wallet functions.

Back in July, one of India’s largest exchanges, WazirX, suffered a $235 million breach. The exchange even offered a $23 million bounty for the hacker to return the funds but in no vain. 

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. 

The latest XT.com hack shows yet again how vulnerable centralized exchanges are to the growing cyber threats.