Crypto.com announced that 483 user accounts were compromised by hackers in recent attacks that saw unauthorized withdrawals in crypto cryptocurrencies including bitcoin and other ether. The company reiterated that funds of customers were not at risk.
Crypto.com’s Hack Postmortem and CEO’s Comments
Crypto.com announced Thursday that the company had revealed the numbers of affected users by the unauthorized crypto withdrawals on January 17th and the theft of cryptocurrencies. It wrote:
This incident affected 483 Crypto.com customers. 483 Crypto.com users were affected by the incident. Unauthorized withdrawals totaled 4.836.26ETH and 443.93 BTC. There was also an approximate US$66,200 in foreign currencies.
According to data from Bitcoin.com Markets at the time this article was written, bitcoin’s price is currently $42,083.95, and ether is now $3,178.94. The hack resulted in the theft of BTC/ETH worth more than $34 million
Kris Marszalek (CEO of Crypto.com), spoke out about the security breaches on Crypto.com in an interview on Bloomberg Wednesday.
Noting that his company invests heavily in cybersecurity, he detailed, “We have 200 professionals around the world who collectively spend the last few years building a very robust infrastructure,” which he said has multiple layers.
“In this particular incident, some of these layers were breached,” he admitted. However, he pointed out: “We were back up and running in about 13, 14 hours, and during the same day, all the accounts that were affected were fully reimbursed, so there was no loss of customer funds.”
Marszalek claimed that the experience was an important lesson, and that his company will work to improve its infrastructure.
The CEO stated that the stolen funds were not a problem.
These numbers don’t seem to be particularly important given the size of the company. Customer funds have never been at risk.
When Marszalek was asked about Crypto.com’s security measures, he replied that they are working to ensure such an incident does not occur again. The executive replied, “There are additional layers of security that we are implementing as well as some new programs.”
Crypto.com has announced the Worldwide Account Protection Program (WAPP), Thursday’s postmortem. The company claims that the WAPP “offers additional protection and security for user funds held in the Crypto.com app and the Crypto.com exchange.” The program restores funds up to $250,000 for qualified users.
Since the Crypto.com exchange is based in Singapore, Marszalek was asked whether he has been contacted by the Monetary Authority of Singapore (MAS), the country’s central bank, which regulates the crypto sector in the country. Marszalek replied:
We did not receive any communication from the regulator at this point.
“We are a regulated business in multiple jurisdictions so we expect this and we are putting together a report that we will share whenever an inquiry comes in,” the Crypto.com executive concluded.
How do you feel about Crypto.com’s hack? Have 483 of your accounts been compromised? Comment below.
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