Following a security breach involving unauthorized access to XT.com
$2.23B
‘s wallet systems, resulting in the loss of $1.7 million in digital assets, the platform has paused all coin withdrawals.
Operating out of the Seychelles in 2018, XT.com is a centralized platform that enables users to trade over 1,000 cryptocurrencies. With an average daily trading volume reportedly hitting $3.4 billion, the exchange ranks among the big players in the crypto market.
On November 28, XT.com announced a temporary suspension of withdrawal services, attributing the decision to ongoing “wallet upgrades and maintenance”.
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However, mere moments before this update, blockchain security analysts at PeckShield reported that the platform may have been compromised.
In response, XT.com confirmed irregular movements within its platform’s wallets, referring to these as “abnormal transfers”. While assuring users that their funds remained unaffected, the exchange emphasized that it maintains reserves at least 1.5 times greater than user assets to safeguard against unforeseen issues.
PeckShield’s investigation revealed that the stolen funds had already been converted into 461.58 Ethereum
$3,694.67
.
Despite these developments, XT.com reiterated its commitment to user safety, clarifying that the affected funds originated from the platform’s reserves, leaving individual account holdings untouched.
XT.com also announced plans to introduce a Merkle Tree Proof of Reserves system to improve transparency.
While XT.com’s transparency efforts aim to rebuild trust, not all breaches result in such proactive measures. In another case, a private key mishap led to the creation of counterfeit tokens. How did this happen? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
