The encryption exchange XeggeX officially closed and filed for bankruptcy: a warning of hacker attacks and operational difficulties.

Gate news, on June 27, 2025, the Crypto Assets exchange XeggeX announced on its official website that it would officially close and apply for bankruptcy due to a hacker attack in February and other recent operational issues. This news once again sounds the alarm for the Crypto Assets market, reminding investors to be cautious when choosing an exchange. The collapse of XeggeX not only reflects its own operational difficulties but also highlights the severe challenges faced by crypto exchanges, especially small and medium-sized platforms, in terms of security, risk control, and funding chain.

1. The Fall of XeggeX: From "Supporting Multi-Chain Niche Coins" to Bankruptcy Liquidation

XeggeX was established in 2021 and was characterized by "supporting multi-chain obscure coin trading," gaining some popularity in the mining coin circle and among certain emerging projects. Its low entry barrier and fast coin listing speed also attracted many curious and small to medium project investors, even gaining a certain popularity among Chinese-speaking users. However, this platform, which was once seen by some users as a "hotspot," ultimately could not escape the fate of bankruptcy.

The direct trigger for the closure of XeggeX was the hacker attack suffered in February this year. At that time, the hacker first infiltrated the Telegram account of XeggeX's CEO and spread chaotic messages through the community, causing panic among users. Subsequently, platform users were unable to log into their personal accounts and were once questioned about "running away." Although XeggeX urgently shut down the wallet interface at that time and claimed that "no abnormal outflow of funds has been found," the work devices of the management personnel were compromised, involving important content such as databases and user information, forcing the platform to suspend services. Some users reported that "wallet balances showed as 0," leading to ongoing controversy.

2. From "Recovering" to "Applying for Bankruptcy": Signals of a Broken Capital Chain

Since the hacker incident in February, XeggeX has been postponing the opening of account functions and user withdrawals under reasons such as "under repair" and "maintenance." However, the long months of "recovery" ultimately failed to save its fate, and instead concluded with an announcement of "closure + bankruptcy." This indicates that the platform is very likely unable to support itself at the financial level.

Comprehensive industry analysis suggests that the reasons XeggeX has come this far may include:

Significant financial losses or data breaches caused by hacker attacks: Although the authorities have not explicitly acknowledged the loss of funds, hacker attacks may have resulted in irreparable financial gaps or data integrity issues, preventing the platform from operating normally.

Restoration of work delays, user confidence completely lost: The prolonged recovery period not only consumed a large amount of resources but also severely undermined user trust in the platform, leading to user attrition and capital flight.

The platform itself has an unstable capital chain: a hacker attack may just be the last straw that breaks the camel's back. As a small to medium exchange, XeggeX may inherently have issues such as insufficient capital reserves and an imperfect risk control system, making it vulnerable in the face of unexpected events.

III. The Warning from the XeggeX Incident: How Can Investors Protect Their Assets?

The incident of XeggeX is not an isolated case. In recent years, the crypto assets market has seen many exchanges collapse or run away due to security incidents, liquidity issues, or even "collusion between insiders and outsiders". This serves as a wake-up call for a wide range of crypto assets investors, reminding everyone to raise their risk awareness and take effective measures to protect their own assets while enjoying the opportunities brought by digital assets.

Do not keep large amounts of funds in small exchanges for a long time: Small exchanges generally have weaker risk control and risk resistance capabilities. Once a security incident or operational problem occurs, the risks faced by users' funds are extremely high, and it is also very difficult to recover the funds.

Choose platforms with good transparency and regulatory background: Prioritize exchanges that have publicly available audit reports, custodial services, and are overseen by clear regulatory agencies. Platforms lacking transparency and without physical regulatory qualifications carry a higher risk.

Diversify assets, and use cold wallets to store long-term assets: This is the safest practice. Exchanges should only be used as tools for short-term trading and circulation, rather than "piggy banks." For long-term holding assets that are not used for frequent trading, they should be transferred to cold wallets controlled by individuals (such as hardware wallets) to minimize exchange risks.

Conclusion:

The closure and bankruptcy of XeggeX once again confirm the high risk of the Crypto Assets market. For investors, each exchange collapse is a profound lesson. While pursuing high returns, asset safety must always come first. Carefully selecting a trading platform, diversifying asset allocation, and fully utilizing security tools such as cold wallets are essential lessons for every Crypto Assets investor to protect their wealth in a complex and ever-changing market.