On November 28, cryptocurrency exchange XT.com halted withdrawals due to what it initially called a "wallet upgrade and maintenance." However, blockchain security firms soon flagged suspicious transfers amounting to $1.7 million, leading XT.com to confirm "abnormal transfers" from its platform wallet.
The Suspected Hack
The analysis by Blockchain experts revealed that the suspected hacker had already converted the stolen funds into 461.58 Ether. These assets are now held in an Ethereum wallet identified by the firm. XT.com clarified that the affected assets belong to the exchange’s reserves, not users' funds. “Rest assured, this will not affect our users,” the platform stated, emphasizing that it maintains reserves 1.5x greater than user assets to ensure security.
To further reassure its community, XT.com announced plans to implement a Merkle tree proof of reserves by mid-December, increasing transparency about its holdings. As XT.com continues to investigate the incident, the exchange has not yet provided a timeline for resuming withdrawals. While the stolen funds were part of its reserves, the incident highlights the ongoing risks centralized exchanges face and the importance of transparency and security measures in the crypto industry.
FAQs
What happened to XT.com?
XT.com reported "abnormal transfers" from its platform wallets, prompting a suspension of withdrawals. Investigations suggest a $1.7M hack.
Are users’ funds affected?
XT.com assured users that their assets remain safe, as the stolen funds belonged to the platform's reserves.
What steps is XT.com taking?
XT.com is launching a Merkle tree proof of reserves by mid-December to enhance transparency and ensure user trust.
