Crypto.com suspends its services following a possible hack

TL;DR Breakdown

• Crypto.com has paused its services to carry out investigations regarding a possible hack.
• Some users complained through social media about losing assets worth tens of thousands of dollars from their exchange’s trading accounts recently.

Crypto.com has confirmed deposit and withdrawal services stoppage amid investigations regarding a possible hack. The exchange is looking into several accounts that reported losing a hefty amount of money through unconventional ways. It also tweeted that its team is updating its security measures and will resume operations once complete.

A possible hack pushes crypto.com to pause its services

Several Cypto.com users have expressed their worries that they may have unknowingly lost funds from their trading accounts. The users posted that they were surprised to find prized digital assets missing from Crypto.com trading accounts. The exchange is currently under maintenance and investigating the matter; therefore, their depositing and withdrawal services are unavailable for now.

Even though several users have complained about the ‘loss’ of their holdings, the exchange has assured them that all funds are intact. A spokesperson for the exchange also refused to give more information regarding the saga.

Crypto.com houses over 10 million clients and is among the most popular exchanges in the US. It is also popular due to its business deals, like the recent take over as the title sponsor of the Los Angeles sports center. The exchange cut a deal worth $700 million, featuring actor Matt Damon, one of their outspoken investors.

Earlier today, crypto influencer Ben Baller tweeted that he had lost 4.28 ETH from his holdings. He explained that the holdings were worth around $14K and it still amazes him how the hacker bypassed the 2FA security protocol.

Baller also revealed that a Crypto.com hot wallet had also lost about 5000 ETH earlier on, worth about $16.3 million. This transaction might be a possible attack since Billy Markus, Dogecoin co-founder, flagged it as suspicious earlier. Markus explained that sizable transactions were moving into a recipient ETH wallet from Crypto.com, raising alarms.

Crypto targeted scams and cyber-attacks continue increasing

Crypto-targeted cyberattacks are increasing rapidly. The crypto industry has been suffering from such attacks for quite some time now. Earlier this month, Immunefi, a decentralized finance security firm, reported that hackers could have made away with over $10.2 B in 2021. The site explained that this figure also includes cash lost through other malicious ways.

The report also detailed that over 120 exploits were done ‘successfully’ on crypto platforms last year. The highest loss recorded came from the Poly Network, amounting to about $613 million, significant for a single network.

Most of these attacks and losses came from the last months, making several authorities warn investors to follow security protocols. However, some attacks were ‘successful’ due to faulty systems used by different crypto platforms. Now, investors can only follow the security protocols of all platforms they use and hope that developers will get better ways to secure their funds.