SECURITY

Crypto.com hacked | Loss of over $30 million in BTC, ETH, CEO: "Small change, will cover all losses"

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Crypto.com hacked | Loss of over $30 million in BTC, ETH, CEO: "Small change, will cover all losses"

Decentralized exchange, financial products, and crypto debit card company Crypto.com has been hacked, affecting around 400 accounts with at least 4,830 ETH and 444 BTC stolen. The CEO stated that they will cover all losses and emphasized that it has not impacted the overall financial situation. A detailed incident report will be released later.

Timeline of Events

1/17: Crypto.com first revealed suspicious activity in a few accounts on 1/17 via Twitter, announcing the suspension of user withdrawals. Many users commented below the tweet reporting unauthorized withdrawals of their ETH and BTC.

1/17 evening: An official tweet stated that a few accounts had experienced unauthorized withdrawal operations, reassuring users that their funds were safe, promising compensation, and advising users to log back into the app, exchange accounts, and reset 2FA settings. Withdrawal functionality would be reinstated shortly.

CEO Kris Marszalek also reiterated in a tweet that there was no need to worry about stolen funds and that withdrawal functionality would be restored.

1/18: Withdrawal functionality was restarted, with new whitelist addresses implemented. Whitelisted addresses would require 24 hours for the first withdrawal. The CEO reviewed the incident:

No users lost assets, and the withdrawal suspension lasted approximately 14 hours. The team has reinforced infrastructure to handle similar incidents in the future. I am particularly pleased with the support from the community, whether public or private messages. This incident helps us progress, and we fear nothing.

Losses Approximately $33 Million

Kris Marszalek admitted in an interview with Bloomberg on 1/20 that about 400 accounts were affected, and an upcoming incident report will disclose the hacked amounts.

OXT Research's on-chain analyst ErgoBTC directly disclosed the hacked amounts on Twitter, which are approximately 4,830 ETH, 444 BTC, totaling around $33 million.