Crypto.com Admits Hundreds of Accounts Compromised by Hack
Updated · Feb 21, 2022
Kris Marszalek, CEO of cryptocurrency exchange Crypto.com confirmed that more than 400 user accounts were compromised in a hack. In an online interview, the executive acknowledged the breach, after previously not committing to a direct answer.
A few days ago, several Crypto.com users began to complain about missing funds. Consequently, the crypto exchange was met with criticism following its Twitter statement that “a small number of users [are] reporting suspicious activity on their accounts.” He added that no funds were stolen.
Some thoughts from me on the last 24 hours:
- no customer funds were lost
- the downtime of withdrawal infra was ~14 hours
- our team has hardened the infrastructure in response to the incident
We will share a full post mortem after the internal investigation is completed.
— Kris | Crypto.com (@Kris_HK) January 18, 2022
The exchange also promptly suspended all withdrawals of crypto tokens from customer accounts.
Speaking to Bloomberg, Marszalek admitted that it was the situation was more significant than previously implied. Hе did not provide many details but said that the company fully reimbursed affected accounts. He also stated that Crypto.com is working on a soon-to-be-released dissection of events.
In a tweet, Blockchain security firm PeckShield stated that the stolen funds amounted to about $15 million.
— PeckShield Inc. (@peckshield) January 18, 2022
Crypto.com is one of the fastest-growing crypto exchanges in the world. Only recently, it announced it will increase its venture capital arm to $500 million from less than half that figure.
A Post-Mortem of Events
The exchange has now published a full incident report to clear the air about the hack and its subsequent actions. In a blog post published on Thursday, Crypto.com revealed that the “unauthorized crypto withdrawals” affected 483 accounts.
Hackers withdrew about 4,836 ETH, 443 BTC, and approximately US$66,200 in other currencies in total, according to the post. Crypto.com reiterates that it restored the funds of all affected accounts.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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