Crypto.com confirms suspicious activity after users report stolen funds

Since its start, the crypto industry has been vulnerable to hacks. This is especially true when the underlying technology is fairly new. Several attacks and violations have occurred, but the most recent incident involved Crypto.com. The cryptocurrency exchange published a public disclosure in the early hours of Monday after users reported suspicious behaviour on their accounts. 

Users discovered they had been hacked, shortly after encountering problems in their application. The majority of them said to have reported missing money. The hacker, however, had gone with all of the funds in the account after stealing a few wallets. The topic was brought up on Twitter throughout the exchange. The hack only affected a “small number of users,” according to the tweet. However, victims disagreed and stated that this was not the case. Following the announcement of the attack, Crypto.com immediately halted all withdrawals on its site. Users were unable to make any withdrawals, and those who had pending withdrawals were unable to finish them.

This was done to prevent the hacker(s) from making any more withdrawals from the affected users’ accounts. The hack is thought to have occurred when the attackers discovered a technique to get through the exchange’s 2FA security procedures. Crypto.com has issued a notice, advising them to reset their 2FA information and log back into the platform to recover access to their accounts.

They stated that the upgrade would be given out to users gradually. Withdrawals will be enabled once the investigation is completed, and users will be able to send their funds out of the exchange. 

At the time of writing, all withdrawal services have been restored. The backlogs, on the other hand, had yet to be cleared. Meanwhile, PeckShield, a blockchain security and data analytics firm, claims that Crypto.com lost USD 15 million as a result of the breach. That sum includes at least ETH 4,600. Half of this is now being laundered using Tornado Cash, a decentralised mixer protocol.

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