In the recent news, Crypto.com in a blog post has announced that the company had lost well more than $30 million in Bitcoin and Ethereum after a hack that took place on January 17th. Crypto.com has been criticized for vague communication around the hack, which was only officially confirmed yesterday by CEO Kris Marszalek.
Hackers Stole Over $30M Worth of Bitcoin and Ethereum
Furthermore, the post informed that the total value of the amount that hackers stole was 4,836.26 ETH and 443.93 BTC — equal to roughly $15.2 million and $18.6 million respectively, at current exchange rates — as well as $66,200 worth of other currencies.
As per the official post, 483 Crypto.com users had their accounts compromised. Crypto.com has stated that all affected clients have been fully compensated for the amount that hackers stole. The latest statement from the firm supplies the most insight yet into the security breach, although details of the exact process of compromise remain unclear.
“On Monday, 17 January 2022 at approximately 12:46 AM UTC Crypto.com’s risk monitoring systems detected unauthorized activity on a small number of user accounts where transactions were being approved without the 2FA authentication control being inputted by the user,” the post reads. “This triggered an immediate response from multiple teams to assess the impact. All withdrawals on the platform were suspended for the duration of the investigation. Any accounts found to be impacted were fully restored.”
Crypto.com Migrates its Two-Factor Authentication System to a New Architecture
In addition to this, the exchange has migrated its two-factor authentication system to a new architecture, and withdrew all current 2FA tokens, suggesting that all clients will need to switch over to the new system. The Crypto.com hack is the latest in a series of attacks targeting cryptocurrency exchanges, which are some of the most high-value marks in the steadily expanding cryptocurrency ecosystem.
Back in 2021, there were over 20 exchange hacks where the hackers stole more than $10 million according to an analysis by NBC News, and six cases where the worth of funds stolen surpassed $100 million.