Following a security breach involving unauthorized access to XT.com
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
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.
