Reportedly Crypto.com Loses Over 15 Million USD after Pausing Withdrawals

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Key Takeaways:

  • Updates: Peckshield confirmed that Crypto.com has lost approximately 15 M Dollars, out of which there are at least 4700 ETH and half of which are being drained using TornadoCash.
  • Crypto.com tweeted and informed people that they have a small number of users reporting suspicious activity on their accounts.
  • Crypto.com halted withdrawals from its platform a few hours ago in response to several “thefts” reported by customers. 
  • The CEO of Crypto.com said that “We are working towards resuming withdrawals in the next few hours. All funds are safe.”
  • He even said that our team is on it and we will keep the community posted as we get more information. The numbers are not material.
Reportedly Crypto.com Loses Over 15 Million Usd After Pausing Withdrawals
Crypto.com Pauses Withdrawals due to Suspicious Activity

Updated: Yesterday Crypto.com suffered a loss and various users reported funds being drained from their wallets. Later that day the platform asked the users to set up their 2FA again and change their passwords. However, this morning, PeckShielf tweeted with a transaction URL that shows the stolen funds from Crypto.com being presently drained using TornadoCash.

According to recent estimates, the exchange has lost over $15,000,000 and at least 4700 ETH. These might be the biggest losses in the first weeks of 2022. Moreover, since Crypto.com is comparatively a big exchange, the incident puts up a question as to how secure are your funds in someone else’s wallet?

News from 18-01-2022

Today, Crypto.com tweeted and informed people that they have a small number of users reporting suspicious activity on their accounts. They will be pausing withdrawals shortly, as their team is investigating this matter. According to the tweet, all the funds are safe. Crypto.com halted withdrawals from its platform a few hours ago in response to several “thefts” reported by customers. 

Billy Markus, the founder of Dogecoin (DOGE), noticed a suspicious transaction pattern on Etherscan, prompting the company to halt all transactions until it can figure out what’s wrong with its platform. Multiple of the same transactions to a new wallet has been made between 2-5 ETH and the funds have not moved after that.

Ben Baller, a cryptocurrency enthusiast and jeweller, claimed that his account had been hacked, resulting in a loss of 4.28 Ether (ETH) (approximately $15,000). He also stated that he used two-factor authentication, implying that the alleged perpetrators had to bypass some of Crypto.com’s security features.

According to a tweet, the hacker got into his account and traded 4 of his coins for USDC then purchased an NFT from within the app. The person contacted the support team of Crypto.com and they said they couldn’t cancel the transactions or refund the coins back because they didn’t detect suspicious activity on their end.

After hours of waiting Crupto.com finally tweeted that in an abundance of caution, security on all accounts is being enhanced, requiring users to sign back into their App & Exchange accounts and Reset their 2FA. They further said that this update will be rolled out to users progressively over the next few hours. Once this process is completed withdrawals will be re-enabled. They said they understand this may be an inconvenience for the users but security comes first.

The CEO of Crypto.com Tweeted that “We are working towards resuming withdrawals in the next few hours. All funds are safe.” He even said that our team is on it and we will keep the community posted as we get more information. The numbers are not material. After this incident people are eagerly waiting for the withdrawals to start again.

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Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.