Introduction
On November 28th, XT.com, a cryptocurrency exchange with a reported daily trading volume of $3.4 billion, suspended withdrawals citing "wallet upgrade and maintenance." However, just an hour later, blockchain security firm PeckShield reported that XT.com had been hacked for $1.7 million worth of cryptocurrency.
The Hack
PeckShield’s report revealed that the suspected hacker had already swapped funds stolen from XT.com for 461.58 Ether (ETH) on an Ethereum address identified by the security firm. This raises concerns about the exchange’s security measures and whether they were sufficient to prevent such a significant breach.
XT.com’s Response
In response to the hack, XT.com issued a statement acknowledging an "abnormal transfer of platform wallet assets." However, they reassured users that their holdings at the exchange remain safe and unaffected by the incident. The exchange claimed that the affected assets belong to their reserves, leaving user account holdings intact.
The Statement
XT.com stated:
"Rest assured, this will not affect our users… We’re taking immediate action, including launching a Merkle tree proof of reserves by mid-December to enhance transparency."
Background on XT.com
XT.com is a centralized cryptocurrency exchange established in 2018 and registered in the Seychelles. The exchange facilitates trading of more than 1,000 digital currencies with daily trading volumes around $3.4 billion.
The Impact
While XT.com claims that user account holdings are unaffected, the hack raises concerns about the security measures in place at the exchange. The incident also highlights the need for greater transparency and accountability within the cryptocurrency industry.
XT.com’s Claims of Reserves
XT.com claimed to maintain reserves 1.5x greater than user assets to ensure maximum security. However, this claim is not publicly verifiable, and users may be left wondering whether their funds are truly safe at the exchange.
What This Means for Users
The hack and subsequent suspension of withdrawals have left many users questioning the safety of their holdings at XT.com. The incident serves as a reminder that even well-established exchanges can be vulnerable to security breaches.
Frequently Asked Questions (FAQs)
- Q: What happened?
A: XT.com suspended withdrawals citing "wallet upgrade and maintenance," but later reported that they had been hacked for $1.7 million worth of cryptocurrency. - Q: Are my funds safe?
A: According to XT.com, user account holdings remain unaffected by the incident, and the affected assets belong to their reserves. - Q: What is a Merkle tree proof of reserves?
A: A Merkle tree proof of reserves is a transparency measure that allows users to verify the exchange’s reserve balances.
Conclusion
The hack at XT.com serves as a stark reminder of the importance of security and transparency in the cryptocurrency industry. As the incident unfolds, it remains to be seen how XT.com will address user concerns and ensure the safety of their holdings.
XT.com’s Communication with Users
In another communication to its followers on X (formerly Twitter), XT.com reassured users that their crypto holdings at the exchange remain safe and unaffected by "recent abnormal asset transfers." The exchange stressed that the affected assets belong to their reserves, thus user account holdings aren’t affected. They also announced plans to launch a Merkle tree proof of reserves by mid-December to enhance transparency.
XT.com’s communication following the withdrawal suspension on Nov. 28. Source: XT Ecxhange
The Hacker’s Actions
According to PeckShield data, the suspected hacker had already swapped funds stolen from the exchange for 461.58 Ether (ETH). The swapped assets sat on an Ethereum address identified by PeckShield.
PeckShield’s announcement of the alleged XT.com’s $1.7 million hack. Source: PeckShieldAlert
XT.com’s Reputation
XT.com is a centralized cryptocurrency exchange established in 2018 and registered in the Seychelles. The exchange facilitates trading of more than 1,000 digital currencies with daily trading volumes around $3.4 billion.
Cointelegraph approached XT.com for a comment regarding the issue but had not received a response at the time of publication.
Funds Are SAFU
In another reassuring message to its followers on X (formerly Twitter), XT.com stated that "funds are SAFU" – or Secure Assets and Funds Utility. This is a reassuring statement, as it implies that user account holdings remain unaffected by the incident.
XT.com’s communication following the withdrawal suspension on Nov. 28. Source: XT Ecxhange
The Future of XT.com
As the situation unfolds, it remains to be seen how XT.com will address user concerns and ensure the safety of their holdings. The exchange has announced plans to launch a Merkle tree proof of reserves by mid-December to enhance transparency.
XT.com’s reputation has been impacted by this incident, but it is essential for users to remain vigilant and ensure that their funds are safe at all times.
Conclusion
The hack at XT.com serves as a stark reminder of the importance of security and transparency in the cryptocurrency industry. As the situation unfolds, it remains to be seen how XT.com will address user concerns and ensure the safety of their holdings.
It is essential for users to remain informed about this incident and take necessary precautions to protect their funds. The cryptocurrency industry requires greater transparency and accountability, and incidents like this serve as a reminder of the importance of security measures in place at exchanges.
