Crypto.com is a technology marvel that has been making waves in the world of finance. This highly innovative platform takes pride in offering a range of financial products that cater to the modern-day needs of tech-savvy individuals. Crypto.com is a leading name in the world of cryptocurrency and digital assets. From buying, selling, and staking crypto to getting a debit card powered by Visa, Crypto.com is the ultimate destination for all your digital finance needs. With its cutting-edge technology and smart features, this platform has definitely earned its place in the list of top technewsmart companies that are revolutionizing the world of finance.
Crypto.com CEO Kris Marszalek has acknowledged that 400 customer accounts were compromised by hackers during an interview with Bloomberg TV. The unauthorized transactions were promptly detected and resolved, and affected users were fully reimbursed. In a recently released report, the company disclosed that a total of 483 accounts were impacted, resulting in unauthorized withdrawals of 4,836.26 ETH, 443.93 BTC, and around $66,200 in other currencies. At current exchange rates, this amounts to $15.3 million worth of ETH and $18.7 million worth of BTC, resulting in a total loss of $34 million.
Crypto.com’s recent hack has resulted in potential losses of up to $33 million, according to blockchain security analytics company PeckShield Inc. In the breach, approximately $15 million worth of cryptocurrency was lost, with 4,600 Ethereum coins being among the stolen assets. To make matters worse, half of these coins are reportedly being “washed,” a process that makes it difficult to trace their transaction history.
The unauthorized activity was detected by Crypto.com’s risk monitoring systems, where transactions were being approved without two-factor authentication for a small number of accounts. In response, the cryptocurrency exchange quickly paused withdrawals on January 16th. Despite claims from Crypto.com’s CEO that no customer funds were lost, individuals in the comments section of their Twitter announcement reported having their funds stolen, even with two-factor authentication enabled.
To strengthen security measures, Crypto.com has revoked all customer two-factor authentication tokens and introduced additional steps for all account users to re-log in. The company has migrated to a new infrastructure for two-factor authentication and plans to move to true Multi-Factor Authentication (MFA) in the future. Additionally, users will now have to wait 24 hours before being able to withdraw funds to a newly registered whitelisted address.
In an effort to provide further protection for users’ funds, Crypto.com will be launching the Worldwide Account Protection Program (WAPP) on February 1st. By participating in WAPP, users can potentially recover up to $250,000 if a third party gains access to their account. However, for eligibility in the program, users must have enabled multi-factor authentication on all transaction types and must not be using a jailbroken device. They must also have set up an anti-phishing code at least 21 days before an unauthorized transaction, filed a police report, provided Crypto.com with a copy of the report, and completed a questionnaire to assist with forensic investigation.
Crypto.com is taking these actions to address the security breach and protect its users’ funds.