Crypto.com Acknowledges Hackers Stole $34 million from Customer Accounts

Popular cryptocurrency trading platform Crypto.com announced this week that it lost around $34 million worth of customers’ cryptocurrency in a recent hack.

Gizmodo reports that Crypto.com, the popular cryptocurrency trading platform, recently acknowledged that it lost around $34 million worth of cryptocurrency in a hack. Previously the company declined to reveal much information about the hack, which prevented users from withdrawing funds for most of the day on Monday, although the company reassured users they would not lose any money. This is just one in a long line of recent cryptocurrency hacks.

Hackers reportedly stole 4,836.26 ethereum, 443.93 bitcoin, and approximately $66,200 in other cryptocurrencies from 483 users. Crypto.com has a user base of around 10 million people. The company stopped all withdrawals on Monday for 14 hours following the detection of “suspicious activity.”

(Photo by JACK GUEZ/AFP via Getty Images)

The stolen ethereum is worth approximately $15.3 million and the bitcoin is worth around $18.6 million. In total, around $34 million was stolen in the hack. But Crypto.com assured users they would not lose any funds due to the hack, saying in a statement: “All withdrawals on the platform were suspended for the duration of the investigation. Any accounts found to be impacted were fully restored.”

Hackers somehow gained access to user accounts, even those with two-factor authentication enabled. Crypto.com has since upgraded its two-factor authentication program and introduced a 24-hour delay for white-listed withdrawal addresses.

Crypto.com also announced that it would be launching an insurance program called Worldwide Account Protection Program. The program allows qualified users to reclaim as much as $250,000 in funds if their accounts are hacked. The company outlined how users can take advantage of this program:

Enable Multi-Factor Authentication (MFA) on all transaction types where MFA is currently available,
Set up an anti-phishing code at least 21 days prior to the reported unauthorized transaction,
Not be using jailbroken devices,
File a police report and provide a copy of it to Crypto.com; and
Complete a questionnaire to support a forensic investigation.

Jason Lau, Chief Information Security Officer of Crypto.com said in a statement: “Crypto.com is a leader in security and compliance, including our recent SOC 2 announcement. While our goal is to prevent any security breaches, our industry leading insurance policy and Worldwide Account Protection Programs offer our customers additional protections in rare instances when there is an incident.”