XT Exchange Freezes Withdrawals After a $1.7M Hack

XT Exchange, known for handling over $3 billion in daily trades, froze all withdrawals after a $1.7 million hack. The breach has left users anxious about their funds. While the exchange claimed the freeze was due to "wallet upgrade and maintenance," the timing raised suspicions.

A Swift Hack and Quick Response

PeckShield, a cybersecurity firm, first reported the breach. The hacker stole $1.7 million in crypto and immediately swapped the stolen funds for 461.58 ETH. The Ethereum was transferred to a wallet with the address “0xB43f…8F83.”

In response, XT Exchange issued a brief statement on X, calling the incident an “abnormal transfer of platform wallet assets.” Although the exchange did not provide a full explanation, users were told that withdrawals were suspended for “wallet upgrade and maintenance.” 

XT also reassured customers by emphasizing reserves that are 1.5x greater than user assets. The platform assured users that their funds remained safe. A team of investigators is working to trace the hacker's steps.

Growing User Concerns

Despite reassurances, users are not fully satisfied. One user expressed gratitude for the update but asked for a timeline. Others voiced concerns that the lack of details would fuel speculation.

The exchange aims to restore trust. XT plans to introduce the Merkel Tree Asset Proof System by mid-December. This move is designed to boost transparency and security. The hack has raised broader concerns about security in the crypto industry. 

Crypto exchanges remain prime targets for hackers, and this breach highlights ongoing vulnerabilities. All eyes are on XT Exchange to see how the situation unfolds and how it responds to this major security incident.