In a recent development, Xeggex, a well-known cryptocurrency exchange platform, has been dealing with a series of issues after users reported a sudden inability to log in and disappearing asset balances. This has sparked widespread distress among its user base, with many fearing the exchange might have been subjected to a “rugpull.”
Xeggex officials have since clarified that the unexpected predicament was a consequence of the CEO’s account being hacked. This resulted in a temporary halt of logins and access to user funds. However, the exchange has been quick to reassure its users, confirming that all wallets were successfully locked, thus preventing any loss of funds. The disconnection of the database from the network was identified as the reason users couldn’t log into their accounts, though the front-end of the website remained functional.
The ensuing situation has understandably stirred panic among the users. With order books appearing empty and balances not visible, some users have aired their concerns about the possibility of a more severe breach. In response to these potential threats, Xeggex took swift action to disconnect the database from the network, thus preventing hackers from causing further damage.
Xeggex has pledged to carry out a comprehensive assessment of the breach and has promised updates to users as soon as more information is available. While the blockchain data confirms that no funds have been moved at this point, the exchange is still in the process of determining the full extent of the hack. Xeggex has reassured users that their teams are actively working to secure all wallets and avert any further issues.
In an official statement, the company said: “Dear users, in this challenging period, our CEO was hacked and lost his tg account and Xeggex community group. We still don’t know the full details about it. However, what is critical at this moment is that we managed to lock down wallets, so funds are safe.”
They further added, “The problem with logins persists due to the disconnection of the database from the network. We will delve into the background to examine everything. The next news will be more detailed after we gain a clearer picture.”
Xeggex’s proactive approach in responding to this crisis offers some reassurance to its users. However, given the volatile nature of cryptocurrency, this incident serves as a reminder of the importance of stringent security measures in the digital currency landscape.