Important Announcement Regarding Xeggex Exploit

Since January 31, many Pactus users have reported issues while using the Xeggex exchange. On February 2, Xeggex became inaccessible, and an announcement was made stating that the CEO’s Telegram account had been hacked.

At that time, the Pactus team offered to help the Xeggex development team recover from the hack. Unfortunately, our offer was ignored. Soon after, it was discovered that a large amount of funds lost from Xeggex had been moved to other exchanges.

Based on recent announcements and actions by the Xeggex team, we believe they may be conducting an exit scam, putting users’ assets at serious risk.

Currently, the Xeggex deposit address for the Pactus blockchain holds over 500,000 PAC coins, which is about 50% of the circulating supply at the time of the incident. To protect users, the Pactus development team has proposed PIP-38, a plan to monitor the Xeggex deposit address and prevent any malicious movement of PAC coins.

PIP-38 introduces a secure mechanism to monitor and freeze the Xeggex deposit address. If Xeggex resumes normal operations, the address can be unfrozen. To support this initiative, we have released Pactus version 1.7.1. We urge all validators on the Pactus blockchain to upgrade their nodes immediately.

It’s important to note that the Pactus community integrated Pactus with Xeggex, and the Pactus team was not involved in listing Pactus on Xeggex. However, we cannot ignore this incident. It is not in our nature to turn a blind eye. We believe action must be taken to ensure accountability in cases of fraud.

To help not only the Pactus community but all Xeggex users, we have created a dedicated channel in the Pactus Discord server for further discussions. The Xeggex team has unprofessionally closed or restricted all their community platforms, leaving users without a place to communicate.

We welcome all Xeggex users to join our Discord, unite, and work together to find a solution. This dedicated channel will serve as a platform for discussion, collaboration, and planning.

Please note that Pactus team will not manage this channel. We have no extra resources and time to manage this channel. It will be moderated by volunteers from the Xeggex user community.

We kindly ask users to post only in the designated channel and avoid disrupting other discussions in our Discord server. To help with this, we have created a new Discord role: @xeggex_unofficial If you’re interested in moderating the discussion channel, please open a support ticket to apply for this role.

Finally, we want to thank the Pactus community for your continued support. There are challenges on the road. But obstacles are just stepping stones on the path to success.

Together, we can overcome them!