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Crypto.com Suspends Withdrawals Due to Unauthorized Activity. Users Claim Losses Up to $15 Million

Singapore-based cryptocurrency exchange, Crypto.com,  announced the temporal suspension of withdrawals on Monday, January 17th, after its hot wallets were compromised.

Crypto.com halted withdrawals after users reported “unauthorized activity” on their wallets. Billy Markus, the co-founder of Dogecoin, also pointed to a suspicious transaction pattern on Etherscan.

Breached, But No Funds Lost

Roughly 14 hours after the initial announcement, Crypto.com announced to its users that withdrawals had resumed and all funds were safe and accounted for. 

Insisting that no funds were compromised, Crypto.com advised users to sign back into their apps, exchange accounts, and reset their two-factor authentication.

Diferring Reports – Up to $15 Million in ETH Was Stolen

Despite declaring that funds were safe, multiple sources have reported that up to $15 million or 4,600 ETH was stolen from the exchange. Many users to have complained have reported losses between 2-5 ETH.

One such victim is, Ben Baller, a crypto enthusiast and entrepreneur. According to Baller, his losses amounted to 4.25 ETH, or the equivalent of $13,924 USD.

On the Flipside

  • Crypto.com reportedly holds 100% of its user funds in offline cold wallets, using an institutional-grade solution by Ledger.

Why You Should Care

While hacks and scams are running rampant in decentralized finance, it remains unclear how a centralized exchange of such renown was defrauded of $15 million.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.