Key Points:

• XT reported a security breach resulting in a $1.7 million loss, with stolen funds converted to Ethereum.
• The XT exchange hack highlights increasing cyberattacks on crypto platforms, although the exchange assures users their accounts were unaffected.

The relatively unknown cryptocurrency exchange XT recently reported a suspected security breach in which hackers made off with about $1.7 million.

Read more: XT.com Review: Reputable Cryptocurrency Exchange You Should Try

XT Exchange Hack Raises Questions With Unusual Transactions

As reported earlier by Coincu, blockchain security firm PeckShield said the stolen assets were converted into Ethereum following unauthorized transfers from the wallet infrastructure of the exchange.

Following the XT exchange hack, the team behind the platform suspended the withdrawal of all digital assets and issued a statement on the issue.

XT explained that unusual transactions had been spotted by the site in some wallets, but nothing happened with the assets stored in them. The exchange claimed the hacked assets belonged to the reserve, not user accounts.

XT then utilized the exchange wallet 0xd.fd7c for abnormal transfers of about $1 million in 12 cryptocurrencies, including USDT. XT reassured users that their funds were safe and not affected by the breach. The exchange promised to introduce a Merkle tree asset-proof system by mid-December to ensure more transparency and security in its operations.

Growing Cyber Threats Test Resilience of Crypto Platforms

The XT exchange hack is the latest challenge facing the cryptocurrency industry as it continues to grapple with growing phishing attacks and scams. Similar incidents have occurred lately, including losses of $43 million at exchanges BingX and $22 million at Indodax in September.

This is a concern that has attracted the attention of law enforcement as well. U.S. authorities last week charged five individuals over a hacking operation that allegedly stole $11 million in cryptocurrency and sensitive data from organizations globally.