During the attack on the Crypto.com infrastructure, the accounts of about 400 users were hacked. The cryptocurrency platform covered the losses of clients, so their funds were not affected, said the company’s CEO Chris Marszalek.
On wider crypto adoption and the number of global crypto users rising to 1 billion in 2022, “I think one of the key things to look at here is the expansion of use cases.” CEO @cryptocom’s Kris Marszalek tells @BloombergTV’s @emilychangtv #TheYearAhead pic.twitter.com/ewK9MvEdHD
— Bloomberg Live (@BloombergLive) January 19, 2022
“We stopped it very quickly, froze the withdrawals, fixed it and went back online in about 13-14 hours. On the same day, all accounts that were affected received a refund. Therefore, there was no loss of customer funds,” Marszalek said.
On January 17, following customer reports of suspicious activity on their accounts, Crypto.com suspended withdrawals. The company assured that user assets are safe, however, PeckShield analysts estimated the damage from the actions of hackers at more than $15 million.
An OXT Research specialist under the pseudonym ErgoBTC noted that the value of the stolen assets was significantly higher. He noticed that the hackers withdrew from the platform not only 4836 ETH, but also 444 BTC (~$18.63 million at the exchange rate at the time of writing). Thus, the total damage could be more than $33 million.
ErgoBTC also highlighted that the attackers sent all of the BTC to a bitcoin mixer address that was used in the past by the Lazarus Group and Darkside hackers.
Crypto.com published a report on the incident. The attack affected the accounts of 483 users. The hackers withdrew 4836.26 ETH, 443.93 BTC and about $66,200 “in other currencies” from the platform. At the exchange rate at the time of writing, the damage amounted to ~ $ 33.93 million.
Following the 17th of Jan security incident, we are sharing our findings below, together with enhancements we’ve made to our security infrastructure and the introduction of the Worldwide Account Protection Program. https://t.co/6q86r0o59V pic.twitter.com/ER7DkBoX1Z
— Crypto.com (@cryptocom) January 20, 2022
The company stressed that “in most cases” its specialists managed to prevent the withdrawal of client funds. All affected users received full refunds.
The platform conducted a security audit, introduced a new two-factor authentication model, and introduced a customer account protection program. Under the latest insurance coverage of the assets of “qualified users” is up to $250,000.
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