Crypto.com has confirmed that they will be canceling all deposits and withdrawals until further notice as authorities investigate reports of a possible hack on their system.
The exchange is investigating a number of accounts that reported losing a lump sum of money through unconventional ways. It also just announced to its followers that it’s updating security measures and expects operations will resume once complete.
With numerous complaints of loss, the exchange has assured them that all funds are intact. However, they refused to give more information regarding the saga and it is unclear what will happen next in this situation.
Crypto.com is a popular cryptocurrency exchange in the US that currently has over 10 million customers worldwide and the most of any other exchanges in America, due to their business deals like recently taking on sponsorship to Los Angeles sports center worth $700 million, featuring Matt Damon, among the list of investors.
Crypto influencer Ben Baller lost 4.28 ETH from his holdings, which are worth around $14,000 according to him; he still can’t believe how the hacker bypassed 2FA security protocol.
Baller revealed that a Crypto.com hot wallet had lost about 5000 ETH earlier this year as well, worth $16 million dollars at current rates – an alleged attack since Dogecoin co-founder Billy Markus flagged it as suspicious and explained large transactions were moving into one recipient Ethereum (ETH) address.
The crypto industry is suffering from rapid cyberattacks. In 2021, it was reported that hackers could have made away with over $10.2 B in crypto currency transactions and cash lost through other malicious ways according to Immunefi which is a decentralized finance security firm.
The report also revealed that over 120 exploits were done ‘successfully’ on crypto platforms last year. The highest loss recorded came from the Poly Network, amounting to approximately $613 million, significant for a single network.
The recent rash of cryptocurrency attacks and losses has many investors worried. But developers can only do their part by following security procedures for all platforms they use, so it’s important to keep an eye on these updates.
Opinions expressed by NY Weekly contributors are their own.