XT Exchange has temporarily suspended withdrawals for all digital assets following what appears to be a security breach. Blockchain security firm PeckShield has reported that the exchange may have been compromised, with the attacker allegedly stealing $1.7 million in cryptocurrencies and converting the funds into Ethereum.

According to an analysis from PeckShield, the hacker swapped the stolen assets for 461.58 ETH, which now resides in a wallet associated with the address “0xB43f.” This activity was flagged by members of the blockchain community, prompting the cybersecurity group to issue a detailed alert on the situation.

XT breaks silence

In response to the incident, XT Exchange addressed the issue through a statement on its social media platform. The exchange disclosed that it had identified abnormal transactions originating from its wallet infrastructure but assured users that their assets remained unaffected.

XT said it keeps reserves that are 1.5 times greater than what its users have, so it can cover any potential losses while keeping customers confident. On top of that, the platform said it's going to launch a Merkel Tree Asset Proof System in December to make things even more transparent and build user trust.

XT Exchange is a big player in the cryptocurrency space, with a reported 24-hour spot trading volume of over $3.15 billion, according to CoinMarketCap. The platform's total reported assets are around $146.1 million, making it a major player in the industry. This breach, however, has put the exchange under the microscope, as users and industry observers assess the strength of its security protocols.

Whether this is the end of the misadventures with the exchange or just the tip of the iceberg remains to be seen. 

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.