Crypto.com faces Controversy as over 400 Accounts were Hacked

Kris Marszalek, CEO of cryptocurrency exchange Crypto.com, has confirmed that hundreds of user accounts were hacked and had their funds stolen.

Marszalek has announced to the media that close to 400 customer accounts were compromised. During the hack, the site paused its user’s ability to withdraw funds.

“We have a small number of users reporting suspicious activity on their accounts. We will be pausing withdrawals shortly, as our team is investigating. All funds are safe,” the company said in a tweet.

Initially, Marszalek posted on social media that “no customer funds were lost.”

However, blockchain security and analytics company Peckshield announced that the exchange lost close to $15 million in the breach.

“The @cryptocom loss is about $15M with at least 4.6K ETHs and half of them are currently being washed via @TornadoCash,” Peckshield tweeted.

Tornado Cash is a platform where crypto transactions are obscured making them more difficult to track.

Marszalek proclaimed that the exchange has 200 security professionals and had created a “very robust” infrastructure, and he claims that it had defense-in-depth.

Additionally, crypto exchange BitMart also reports a hack of $200 million. Victims of the BitMart hack then clamor as they continue to wait for their money even after a month has passed since the hack.

According to reports, BitMart promised to fully reimburse those who have lost funds in the platform-wide cyber attack.

Source: Business Standard