Crypto.Com Issues Official Statement Regarding Security Breach

On January 20, issued an official statement to share details of its losses during a recent breach of its security network.

Nearly $34m Worth Of Digital Assets Were Stolen – Crypto.Com

Part of the statement revealed that hackers stole “444.94 BTC, 4,836.27 ETH and about $66.3K worth of other digital assets” from its platform. The current market data shows that the exchange can be estimated to have lost nearly $34m worth of users’ funds.

Why the company issued a press release today even though the security breach happened three days ago is not understandable. Users started complaining about irregular balances on January 17 to the firm’s official Twitter handle. However, the exchange responded vaguely to their complaints.

Crypto.Com Official Statement. Source: Twitter.


Part of the press release also stated that the company’s risk monitoring systems identified suspicious activities on various user accounts without the 2FA. Hence, the exchange’s response was to stop withdrawals, disable the 2FA feature, and reset its security measures. Thus, each user had to log in again and re-activate their 2FA before performing any action on their account.

However, users were worried as the site’s systems were down for more than 13 hours. More so, the company didn’t issue any statements during this period. The firm’s CEO even fueled the fear saying, “all users’ funds are still intact.” Even after admitting that a hack truly happened while speaking with a Bloomberg TV correspondent, the exchange CEO maintained that “user’s funds weren’t at risk at all.” 

He also revealed that the hack affected over 395 user accounts. Strangely, the exchange’s CEO stated that the number of affected accounts was almost insignificant compared to its user base.

Preventing Future Recurrence further revealed that it had added a new security feature to its security system. This new feature would prevent any user from making a withdrawal to a new listed address unless they have been registered for at least 24 hours. The statement further read that “each user will be notified when an additional withdrawal address has been added. Hence, they’d have enough time to respond adequately.” boss, Kris Marszalek, told journalists that the financial watchdogs have not called on them. He also said, “we have learned our lessons, and we continue to bolster our security system.” 

Various crypto security firms have made their assertions regarding the incident. Also, the firm has launched a global account protection program (WAPP) which enables fast user account protection against unauthorized access or withdrawals.

Claims From Various Crypto Security Firms

One of them (Peckshield) claims that must have lost at least $16m worth of eth during the incident. It further stated that nearly 60% of the stolen funds must have been converted to tornado cash to turn it to clean money. Another firm (OXT Research) opined that the exchange must have lost at least $34m to the security breach incident.

ErgoBTC (another crypto-security firm) stated that the hackers stole 444 BTC, a figure that tallied with what the exchange revealed today. 

Leave a Reply

Your email address will not be published.


Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]

GlobalTrades Review, – Is Global Trades Scam or a Good Broker?

GlobalTrades Trading Platform Rating 4.6 Summary Read our Global Trades review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is scam or legit” and much more! GlobalTrades Review As people look at cryptocurrencies and their immense success, they are eager to start their own trading businesses. While […]

Belgium Regulator Sets To Impose New Crypto Ads Rules

The Belgium government has mandated that every firm offering crypto advertisements should register with it before launching any campaign. Henceforth, any crypto advertisement without the government’s backing would be treated as an offense with heavy consequences. According to the report, the Financial Services and Markets Authority (FSMA) of Belgium recently announced that every potential crypto […]

Profit-taking on BTC Surge, As Price Breaks The $27,000 Threshold

It has just been confirmed that BTC has experienced the most extensive profit-taking activity since the last quarter of 2020. This information was obtained from data released by Santiment, an on-chain data analytics company. The released data also states that the profit-to-loss volume of the day-to-day ratio on on-chain transactions was one of the major […]

Governments Who ban Drugs Should Ban Crypto Too, Said Belgium’s Ex-Finance Minister

The former finance minister of Belgium, Johan Van Overtveldt, reportedly suggested that any country that bans drugs should also ban crypto assets. According to reports, he made the statement during the recently concluded European Parliament meeting. During the meeting, the parliament was reportedly deliberating on the effect the recent collapse of three crypto-friendly banks, Silvergate […]