Crypto.com, the popular cryptocurrency exchange platform, halted all deposits and withdrawals on Monday, January 11, citing “unauthorized activity” on some accounts. The company has however restored certain accounts and withdrawal services. It noted that these accounts are now secure.
News From Yesterday
PeckShield security firm and data analyst, Crypto.com was the latest victim of a hacker attack, with approximately $15 million in cryptocurrency taken. At least 4,600 Ether has been taken from some of the exchange’s accounts.
Crypto.com posted a Tweet informing its users of suspicious behavior reported by users. As their staff examines the matter, withdrawals may be temporarily stopped. According to the message, all monies remain safe.
There are a few users who report suspicious activity on their accounts.
Our team is currently investigating. We’ll be suspending withdrawals as soon as possible. All funds are secure.
— Crypto.com (@cryptocom) January 17, 2022
Dogecoin (DOGE) founder Billy Markus spotted a strange transaction pattern on Etherscan, leading the firm to suspend all transactions until it can figure out what’s wrong with their platform.
Many users shared on social media the news that digital assets worth tens to thousands of dollars had disappeared from an exchange.
It is my sincere hope @cryptocom gets their shit together. Because a lot of theft is going on and if you check https://t.co/tO1rPRGTgC from the cryptocom wallet address. You’ll see a bunch of 2ETH to 5ETH transactions being sent to wallets with single transactions. What is the secret to bypassing 2FA?
— BEN BALLER™ (@BENBALLER) January 17, 2022
Ben Baller is a crypto enthusiast and jeweller. He claimed his account was hacked, and had lost 4.28 Ether, or approximately $15,000, (about $0.25). He also said he used two-factor authentication, meaning that the suspected criminals had to get around some of Crypto.com’s security measures.
BTC/USD is yet to cross the psychological barrier. Source: TradingView
The funds were moved using Tornado Cash, which made it more difficult to trace. In recent months, technical glitches in cryptocurrency trading platforms are becoming more common. Even the top crypto exchanges experienced major disruptions in peak periods.
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Crypto.com Loses $15M To Hack
Crypto.com asserts that their accounts are safe. However, Peckshield a security firm and data analyst specializing in blockchain, says the exchange lost approximately $15 million, which is at least 4,600 Eth, during the theft.
The @cryptocomLoss is approximately $15M, with at minimum 4.6K Ethereums. Half of these are being washed through @TornadoCash https://t.co/PUl6IrB3cp https://t.co/6SVKvk8PLf pic.twitter.com/XN9nmT857j
— PeckShield Inc. (@peckshield) January 18, 2022
Kris Marszalek, CEO of Crypto.com stated via Twitter that none customer funds were lost. In reaction to the event, the Crypto.com team reinforced the exchange’s security infrastructure, he noted. The exchange is investigating the security incident.
A few thoughts on the past 24hrs
– no customer funds were lost
– the downtime of withdrawal infra was ~14 hours
– our team has hardened the infrastructure in response to the incidentOnce the internal investigation is complete, we’ll share our full post mortem.
— Kris | Crypto.com (@Kris_HK) January 18, 2022
Crypto.com finally launched after hours of waiting tweeted that security on all accounts is being increased out of an abundance of caution, asking users to sign in to their App & Exchange accounts and Reset their 2FA. The update would be distributed gradually over the coming hours to all users. After the update is complete, withdrawals can be resumed. The company stated they are aware that withdrawals can be difficult for some users but security is the priority.
Crypto.com has over 10,000,000 customers and is one of America’s most popular trading platforms. We’d like Crypto.com to provide us with more information about this.
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