Cryptocurrency exchange XT.com suspended withdrawals on November 28 following an “abnormal transfer of platform wallet assets,” sparking concerns of a potential $1.7 million hack.
According to blockchain security firm PeckShield, stolen funds were converted into 461.58 Ether, which now resides in an Ethereum wallet linked to the incident.
The exchange initially attributed the suspension to “wallet upgrade and maintenance” but later acknowledged the unusual activity.
In its statement, XT.com reassured users, “Rest assured, this will not affect our users,” while highlighting that the exchange maintains reserves 1.5 times greater than user assets to ensure security.
PeckShield was among the first to report the incident, suggesting the unauthorised transfer may have involved $1.7 million worth of cryptocurrency.
The breach has raised questions about centralised exchange security measures, though XT.com emphasised that the affected assets belong to its reserves, not user accounts.
The Seychelles-registered exchange, founded in 2018, facilitates trading for over 1,000 digital assets and reports a daily trading volume of $3.4 billion.
Amid the fallout, XT.com announced plans to implement a Merkle tree proof of reserves by mid-December to improve transparency and rebuild user trust.
In a communication via X (formerly Twitter), XT.com reiterated that user holdings remain unaffected and safe despite the incident.
“We’re taking immediate action, including launching a Merkle tree proof of reserves,” the exchange stated, aiming to restore confidence in its operations.