XT.com, a Seychelles-based cryptocurrency exchange with daily trading volumes exceeding $3.4 billion, has blocked all withdrawals following a suspected security compromise involving $1.7 million in cryptocurrency. The platform initially ascribed the suspension to “wallet upgrade and maintenance.”
Blockchain security specialists reported an irregular asset transfer, which uncovered the problem. The accused hacker allegedly changed the stolen cash into 461.58 Ether, which is presently stored in a marked Ethereum wallet. Shortly after these reports, XT.com acknowledged the anomalous behavior, stating that an abnormal transfer occurred from one of its platform wallets.
In a statement, the exchange promised users that the event would not affect their assets. XT.com explained that the compromised assets are in its reserves and confirmed its policy of keeping reserves 1.5 times larger than customer holdings to ensure safety and liquidity.
The exchange is striving to improve transparency by implementing a Merkle tree proof of reserves by mid-December. After the investigations conclude, withdrawal services are likely to gradually resume.
This intrusion demonstrates the continued difficulty that centralized exchanges face in fighting cyber threats. Despite strengthened security measures across the sector, the frequency of such occurrences remains a major issue, emphasizing the importance of ongoing attention and innovation in protecting digital assets.
