Crypto.com CEO Denies Alleged 2023 Hack as CRO Faces Price Drop

Key Highlights

• Crypto.com CEO dismisses breach cover-up claims, stresses quick containment measures
• CRO token drops 6% in 24h, extending weekly losses after security concerns emerged
• Trump Media deal and IPO prospects position Crypto.com for stronger Q4 performance

Crypto.com CEO Kris Marszalek has spoken about allegations of a data breach in 2023 that appears to have impacted the exchange. The claims were that teenage hackers managed to get into the account of an employee where limited user information was revealed. Despite widespread speculation, Marszalek insisted that no customer funds were in jeopardy and that the breach was quickly contained.

The controversy began after a Bloomberg investigation linked the attack to the Scattered Spider hacking group, highlighting 18-year-old Noah Urban of Florida as a key figure. The report suggested the hackers used phishing techniques to access internal systems. However, Crypto.com officials confirmed the exposure involved only a very small number of users and partial personal information.

CEO Refutes Allegations of Silence

Marszalek took to social media to respond, describing claims of a cover-up as misinformation. He explained that Crypto.com had reported the incident in a 2023 NMLS filing and to relevant regulators. 

The CEO stressed that the platform maintains a “security-first culture” and holds more security certifications than any competitor. He also reiterated that the phishing attempt was contained within hours and that customer funds remained entirely safe.

Moreover, blockchain investigator ZachXBT alleged that there were various breaches, which Marszalek denied directly. The CEO emphasized that Crypto.com continuously enhances its systems and passes through strict security tests. He positioned the incident as a contained event, which shows the strength of the platform, as opposed to its weakness.

CRO Price Dips Amid Market Turbulence

Following the reports, Cronos (CRO) experienced a notable price drop. CRO as of press time trades at $0.2091 with a 24-hour volume of $89.7 million. The token has declined almost 6% in the past day and over 8% across the last week. Market observers noted the correction follows a brief surge tied to a high-profile partnership with Trump Media & Technology Group.

Earlier this month, Crypto.com finalized an agreement with Trump Media to establish a CRO treasury. The companies also intend to introduce a range of ETFs and ETPs in the near future. 

Even though the prices have been fluctuating lately, Marszalek is optimistic in Q4 performance. He is allegedly pursuing IPO prospects and strengthening alliances and stability of high turnover.

Supported by a 1.5 billion yearly revenue and 1 billion gross profit, Crypto.com remains one of the most lucrative crypto exchanges. Experts propose that the proactive security measures and the growing institutional collaboration of the platform may enhance investor confidence in the future.