XT Exchange has temporarily halted all digital asset withdrawals following a suspected security breach.
Blockchain security firm PeckShield has revealed that the exchange may have fallen victim to a hack, with the perpetrator allegedly stealing $1.7 million in cryptocurrencies before converting the funds into Ethereum.
PeckShield’s analysis indicates that the stolen assets were exchanged for 461.58 ETH, which were then transferred to a wallet linked to the address “0xB43f.”
This suspicious activity was swiftly flagged by the blockchain community, prompting PeckShield to issue a detailed security alert.
Responding to the breach, XT Exchange issued a statement via its official social media channels.
The platform acknowledged detecting unusual transactions within its wallet infrastructure but reassured users that their funds remained secure.
To bolster user confidence, XT highlighted its robust reserve system, which is reportedly 1.5 times the total user assets.
The exchange also announced plans to roll out a Merkle Tree Asset Proof System in December, aiming to enhance transparency and solidify trust among its users.
As a major player in the cryptocurrency market, XT Exchange boasts a 24-hour spot trading volume exceeding $3.15 billion, with reported total assets of approximately $146.1 million, according to CoinMarketCap.
The breach has raised concerns about the platform’s security measures, placing XT under increased scrutiny from users and industry experts alike. Whether this incident marks a one-off setback or signals deeper vulnerabilities remains uncertain.
The cryptocurrency community will undoubtedly watch closely as XT Exchange navigates the aftermath of this breach, with its forthcoming transparency initiatives likely to play a key role in restoring trust.
The cryptocurrency industry continues to grapple with major cybersecurity challenges, as demonstrated by losses amounting to $88.47 million in October 2024 alone.
This makes it the second-lowest month for losses in 2024, following April, which recorded $60.19 million in damages, according to cybersecurity firm PeckShieldAlert, reports Cryptopolitan.
Radiant Capital experienced the most significant breach of the month, marking its second major hack this year. The platform previously lost $4.5 million to a flash loan exploit.
In the recent attack, however, a staggering $53 million was siphoned from users’ wallets. Radiant Capital attributed this substantial loss to sophisticated malware that targeted developers’ hardware wallets.
U.S. Government Seizure Fund was also compromised, losing $2 million when funds were transferred from an official government wallet to an unidentified address.
Blockchain research firm Arkham Intelligence flagged this suspicious movement, which saw the attacker later return approximately $19.3 million.
EigenLayer Protocol, built on Ethereum, reported a $5.7 million exploit on October 4. The stolen funds were laundered through the HitBTC and Bybit exchanges.
The project pointed to “unapproved selling activity” as the source of the issue and launched an investigation into the wallet linked to the exploit.
