Kris Marszalek, head of crypto exchange Crypto.com, confirmed that a recent hack on the platform compromised hundreds of user accounts and stole some of the funds. The method of hacking and other details of the incident have not yet been fully clarified.
According to Mr. Marszalek, the attackers compromised about 400 user accounts. He has yet to receive any hack-related notifications from the relevant regulators, but has expressed a willingness to share any information available if necessary. Official statements from Crypto.com and personally the head of the crypto exchange were initially vague and unclear: Some sort of security concerns were reported “Incident”resulting in a small number of users “reported suspicious activity on their accounts”. In addition, Mr. Marszalek answered “Twitter», What “Customer funds were not lost”However, this statement was interpreted as the company’s intention to independently compensate for the damage caused, without passing it on to customers.
Some thoughts from me about the last 24 hours:
– no customer funds have been lost
– Withdrawal infra downtime was ~14 hours
– Our team has hardened the infrastructure in response to the incident
We will release a full post-mortem after the internal investigation is complete.
— Kris | Crypto.com (@Kris_HK) January 18, 2022
Subsequently, some details were revealed by the cybersecurity company PeckShield. As a result of the hack, Crypto.com lost $15 million in Ethereum cryptocurrency – the funds were sent to the Tornado Cash service for laundering. Tornado Cash offers a so-called “mixer”, which makes it impossible to track the further movement of the cryptocurrency.
Crypto.com has become one of the most recognized brands in the industry thanks to sponsorship deals in the sports world. After one such $700 million deal, the Los Angeles Lakers’ home stadium was renamed Crypto.com Arena. The company has also worked with the UFC Martial Arts League, the NBA’s Philadelphia 76ers, the NHL’s Montreal Canadiens and the Australian Football League, all at a cost of $1.5 billion for sponsor Hacker. According to NBC News, in 2021 there were more than 20 trading platform hacks each costing more than $10 million and 6 incidents where damage exceeded $100 million.