George Miller
XT Exchange, a worldwide cryptocurrency trading platform, has reported a security incident involving unauthorized access, resulting in a loss of around $1.66 million across various blockchains such as Ethereum ($ETH), Binance Smart Chain ($BNB), and Optimism ($OP).
The breach was discovered through XT Exchange’s AI monitoring systems, which detected unusual fund transfers to external wallets, where funds were quickly exchanged and moved to the Ethereum network. As a precaution, all withdrawals have been halted.
In their announcement, XT Exchange recognized the irregular activities and reassured users that their funds are safe. They stated, “This incident will not impact our users,” reinforcing their commitment to asset protection. XT maintains reserves that are 1.5 times greater than customer assets, providing adequate coverage during such situations.
Investigation and Future Safeguards
The XT Exchange team is currently looking into the breach and is taking steps to reduce future risks. In line with their dedication to transparency and security, they plan to introduce the Merkel Tree Asset Proof System in mid-December. This new feature aims to boost user confidence by offering clearer insights into the exchange’s asset reserves and overall financial status.
Building and Maintaining User Trust
Despite the recent incident, XT Exchange expressed appreciation for the ongoing support of its users. Their swift response and strong reserve policy reflect a commitment to uphold user trust and the integrity of the platform.
As the investigation progresses, XT is focused on enhancing its security measures to prevent similar occurrences in the future. Users are encouraged to keep an eye on official updates as XT implements further protective actions and increases transparency.