Xeggex, a well-known cryptocurrency exchange, is facing a major crisis after users reported losing access to their accounts and seeing their asset balances disappear.
Many fear that the platform may have suffered a “rug pull,” a term used in the crypto industry when an exchange or project vanishes with users’ funds.
How did the Hack Happen?
The panic started when multiple users noticed that order books were empty and their balances were no longer visible.
Xeggex officials responded, explaining that their CEO had been hacked, losing access to his Telegram account and the Xeggex community group. They assured users that while they were still gathering details, they had successfully locked down wallets to protect funds.
“Dear users, in this hard time our CEO was hacked and he lost [his] TG account and Xeggex community group. Besides that, we still don’t know details about it. Also, what is important at this moment is that we succeeded in locking down wallets, so funds are safe.”
“The problem with logins is still there due to the database being disconnected from the network. We will go in the background to examine everything… The next news will be more detailed after we get a wider picture,” an official statement from Xeggex read.
To prevent further security risks, Xeggex disconnected its database from the network. However, users remain anxious, fearing that the breach may be more severe than initially reported.
A Growing Threat: Crypto Hacks on the Rise
The Xeggex incident is the latest in a growing trend of security breaches affecting the crypto industry. Over the past few years, hackers have targeted exchanges, DeFi protocols, and even high-profile individuals, stealing billions of dollars.
With the rise of digital assets, cybercriminals have developed more sophisticated ways to exploit vulnerabilities.
Many security experts warn that as cryptocurrency adoption increases, so will the number of hacking attempts. Exchanges and users alike must implement stronger security measures, including multi-factor authentication, offline storage, and improved monitoring systems to detect suspicious activity.
Also Read: Truth Terminal Founder’s X Account Hacked To Carry Out $600K Memecoin Scam
High-Profile Hacks Add to Industry Concerns
The Xeggex situation comes just as other high-profile crypto-related hacks have made headlines. Earlier in December, the executive chairman of Animoca Brands had his X (Twitter) account hacked.
The attacker changed the account’s display name to “Animoca Brands issuing new coins” and used it to promote dubious tokens and contracts.
Meanwhile, Nasdaq’s official X account was also compromised in a separate incident. Hackers used the account to promote a fraudulent memecoin called STONKS, misleading users by linking a fake X account that falsely appeared to be affiliated with Nasdaq.
The scam was amplified as the compromised Nasdaq account retweeted multiple posts, increasing visibility for the fraudulent token.
Crypto Industry Faces Urgent Need for Stronger Security
The string of recent hacks highlights the urgent need for better cybersecurity practices across the crypto industry. From major financial institutions to individual investors, no one is completely safe from cyber threats.
As for Xeggex, users await further updates, hoping for a resolution to the login issues and missing funds. While the exchange has reassured users that funds are secure, the lack of access and transparency continues to fuel concerns. Whether this incident is a targeted attack or a deeper security flaw remains to be seen.
For now, crypto traders are once again reminded of the importance of security, vigilance, and the risks that come with trusting centralized platforms.
Also Read: ZachXBT Exposes $3.5M Crypto Fraud On Memecoins Linked To Social Media Account Hacks