$ 34 million loss for Crypto.com

CRO, the original token of the exchange Crypto.comis up today after the publication of the report describing the latest attack that caused the loss of nearly $ 34 million.

$ 34 million loss for Crypto.com
Source: AdobeStock / Stanislav

“The incident affected 483 Crypto.com users. Unauthorized withdrawals amounted to ETH 4,836.26, BTC 443.93 and approx. [USD] 66,200 in other currencies, “the company said in the report.

At current prices, that equates to a value of nearly $ 34 million.

In most cases, the report says, the platform prevented unauthorized withdrawals, “and in all other cases, customers were refunded in full.”

As for how events unfolded, the company said it noticed suspicious activity on some user accounts on January 17, when transactions were approved without the user undergoing a two-way verification check (2FA). Crypto.com has “transformed and migrated to a whole new 2FA infrastructure”.

The company audited the infrastructure internally and “engaged” with third-party security companies, they said.

It will then continue to add new features for multi-factor authentication (MFA).

They also introduced the Worldwide Account Protection Program (WAPP), which the platform says provides “additional protection and security for user funds” held in the app and on the stock exchange. “WAPP is reinstating funds of up to $ 250,000 for qualified users; terms and conditions apply,” they added.

CRO has risen almost 3% since the report was released today. It has increased by 0.9% in the last 24 hours. It has fallen 10% in the last week and almost 13% in the last month.

Development of the CRO award over 24 hours. Source: Coingecko.com

Earlier this week, Crypto.com temporarily suspended payouts following warnings about unusual activity on the blockchain from exchange-owned wallets.

Security companies and analysts quickly discovered large amounts of digital assets being transferred to melange protocols. Community PeckShieldspecializing in blockchain security and data analytics, claimed that the stock market lost at least $ 15 million, much of it in Ethereum (ETH), which was laundered through TornadoCash.

Before the report is published, ErgoBTCa person claiming to be a blockchain analyst at Bitcoin Research Company (BTC) OXT Researchclaimed that an additional 444 BTC ($ 18.63 million) was lost.

If you add the results from PeckShield and the results from ErgoBTC, the loss would have been $ 33.66 million – which means that the company actually lost more than originally assumed in society.

In an interview with Bloomberg, CEO of Crypto.com, Kris Marszalekdownplayed the economic consequences and said:

“Given the size of the company, these numbers are not very large and customer funds were not at risk.”

In addition, despite previous complaints about poor communication and lack of transparency, users seem satisfied with the way Crypto.com handled the hack. “They handled the situation in a professional way, refunding anyone who had their cryptocurrencies stolen was the only thing they could do,” a Reddit user said.

Others pointed out that reimbursement was the only solution. “The alternative was the disappearance of the exchange,” commented another user.


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