Crypto.com says "all funds are safe" after the hack, but data shows $15 million of Ether is missing
Crypto.com, a 5-year-old cryptocurrency exchange with the face (investor) of Hollywood superstar Matt Damon, has been hacked.
On Monday morning, Crypto.com announced via Twitter that "we are seeing a small number of users reporting suspicious activity on their accounts." Accordingly, the company stopped withdrawals to ensure the safety of user funds and launched an investigation. Crypto.com said, "All your funds are safe."
On January 18, blockchain security and analytics firm PeckShield released approximately $15 million worth of Ether to Crypto.com using Tornado Cash, a decentralized smart contract platform that allows users to conduct anonymous transactions on the blockchain. tweeted that he was robbed from Ethereum. . PeckShield's comments, which industry analysts believe are correct, come after Crypto.com downplayed the hack and attempted to reassure users that their funds were not stolen.
According to blockchain data, hackers stole $15 million from Crypto.com users. The cryptocurrency exchange admits to the hack, but insists that “customer funds were not lost.” Based on your comments, Crypto.com plans to refund users stolen during a security breach. Downplaying the severity of the Crypto.com hack has provoked some criticism. Cryptocurrency exchanges continue to invest in improving security, but continue to be looted, which is a worrisome trend.
On January 17th, Crypto.com suspended withdrawals "to ensure the safety of user funds" after acknowledging via Twitter that "a small number of users" had reported "suspicious activity". Then later that day, the cryptocurrency exchange fixed the issue, strengthened its security infrastructure, restored all withdrawal services, and tweeted that "all your funds are safe."
In an interview with Bloomberg TV, Crypto.com CEO Kris Marszalek later confirmed that 400 accounts had been compromised during the breach. Marszalek said the company solved the problem by immediately putting the withdrawal on hold and then bringing everything online "within about 13 to 14 hours".
The CEO also hinted that the money was stolen, despite the company previously said no funds were lost. "All affected accounts were restored and there was no loss of customer funds," he said. These comments suggest that the company believes that funds will not be lost if everything stolen is repaid.
Marszalek, who did not disclose the exact amount of the stolen money, added that more information will be available in the future once Crypto.com completes its investigation.
Crypto.com's efforts to reassure users that everything is under control and that the hack didn't cost their customers money was undermined by a tweet from Chinese blockchain security firm PeckShield. Contrary to Crypto.com's claim that "all funds are safe," PeckShield actually reported losses of around $15 million on the exchange.1 Several Crypto.com users also admitted on Twitter that their accounts had been stolen.
PeckShield's claims have been supported by some industry analysts, including Scott Pounder, the head of research at Crystal Blockchain. According to Fortune, blockchain data shows that Crypto.com has brought “a significant amount” of it.
Crypto.com`s obvious willingness to quickly reimburse clients with its personal capital will show reassuring to users, as will movements made through the change to reinforce its safety. The equal can not be stated for the company`s repeated insistence that "all finances are safe." This incredibly deceptive declaration threatens to harm Crypto.com`s popularity and undo a number of the development made through the remaining year's pricey advertising and marketing drive.
Still, Crypto.com isn't the handiest sufferer of virtual scammers. These exchanges are prone to theft, even if there is respectable safety in place. In 2021, cryptocurrency hackers stole $14 billion, in line with statistics and blockchain analytics organization Chainalysis, that's 79% greater than what they crafted from scams and thefts in 2020.