Cryptocurrency exchange XT.com, temporarily suspended withdrawals after falling victim to a cyberattack. The hack, which occurred on November 28, resulted in the theft of $1.7 million worth of digital assets.
Hack Details and Response
XT.com has reassured its users that its reserve system, which is designed to hold 1.5 times more assets than what users have deposited, remains intact. This mechanism is intended to cover any potential losses, thereby offering customers some peace of mind. The exchange also revealed plans to introduce a Merkel Tree Asset Proof System in December, a move aimed at increasing transparency and building trust with its user base.
The Broader Impact on Cryptocurrency Exchanges
This breach is not an isolated incident but part of a growing trend of cyberattacks targeting crypto exchanges. In September 2024, other exchanges like BingX and Indodax were also victims of hacks, losing $43 million and $22 million, respectively.