Crypto Exchange XT.com Halts Withdrawals Amid $1.7 Million Hack Allegations

XT.com, a Seychelles-based cryptocurrency exchange, has paused withdrawals following reports of a suspected $1.7 million hack.

The platform initially attributed the suspension to “wallet upgrade and maintenance” in a statement issued on November 28.

“Due to the wallet upgrade and maintenance, XT has suspended all coin withdrawals. Sorry for the inconvenience caused during the suspension,” the exchange wrote.

PeckShield Claims XT.com Lost $1.7M

However, in a post on X, blockchain security firm PeckShield claimed that XT.com might have lost $1.7 million worth of cryptocurrency due to hack.

PeckShield identified an Ethereum wallet linked to the alleged hacker, which reportedly converted the stolen funds into 461.58 Ether (ETH). The assets remain in the wallet.

#PeckShieldAlert Our community member has detected that @XTexchange appears to have been hacked for ~$1.7 million worth of cryptos.
The hacker has swapped the stolen funds for 461.58 $ETH & sit in 0xB43f…8F83 pic.twitter.com/bwINPguXlZ

— PeckShieldAlert (@PeckShieldAlert) November 28, 2024

Shortly after, XT.com also acknowledged an “abnormal transfer of platform wallet assets,” but assured users that their funds remain secure.

The platform claimed that it has a 1.5x reserve policy to safeguard user assets.

Launched in 2018, XT.com facilitates trading of over 1,000 digital currencies.

CoinGecko data shows that the exchange has $47.7 million in reserves and reported trading volume of $3.3 billion in the past 24 hours.

🚨 XT Statement on Abnormal Transfer of Platform Wallet Assets 🚨

Today, XT detected an abnormal transfer from our platform wallet. Rest assured, this will not affect our users. 💪

🔒 We always maintain reserves 1.5x greater than user assets to ensure maximum security.

Our… pic.twitter.com/SdEL75PxZF

— XT Exchange (@XTexchange) November 28, 2024

The hack marks the latest in a string of attacks targeting exchanges; BingX and Indodax lost $43 million and $22 million, respectively, in September.

U.S. Prosecutors Charge Five in $11M Crypto Hacking Scheme

The recent hack comes as phishing attacks and crypto scams remain a major issue for crypto users, resulting in substantial losses.

Last week, U.S. federal prosecutors charged five individuals in connection with a sophisticated hacking operation that allegedly stole $11 million in crypto and sensitive data from individuals and companies across multiple countries.

According to court filings, the alleged hackers targeted at least 29 individuals, with one victim losing over $6.3 million in cryptocurrency after their email and digital wallets were compromised.

Prosecutors claim the group also targeted 45 companies in the U.S., Canada, India, and the United Kingdom.

Among their targets was a U.S.-based cryptocurrency exchange whose employees were tricked by fake text messages into divulging sensitive credentials.

These phishing texts warned employees that their accounts would be deactivated unless they followed embedded links.

As reported, the Department of Homeland Security (DHS) has disrupted hundreds of crypto scam incidents, reclaiming billions in extorted cryptocurrency since 2021.

DHS investigators have intercepted 537 ransomware attacks before they could cause widespread damage.

The effort, led by the Homeland Security Investigations (HSI) Cyber Crimes Center, has proven particularly vital for the protection of U.S. government agencies, which have been the primary targets of these cyber threats.