In an interview with Bloomberg TV on Wednesday, Crypto.com CEO Kris Marszalek said that about 400 user accounts had been stolen due to a breach. Several Crypto.com consumers have claimed that their monies have been stolen, and the corporation has so far only provided ambiguous replies to their claims.
While Marszalek did not disclose specifics on how the attack happened, he told Bloomberg TV that the exchange was back up “approximately 13-14 hours” after the event and that all of the affected accounts had been paid for their losses.
According to Marszalek’s statement, this is the first time that Crypto.com has publicly acknowledged that a hack did take place. When Crypto.com announced on Twitter that a “small number of users [were] reporting suspicious behavior on their accounts,” withdrawals were temporarily suspended on the site. Additionally, out of “an excess of caution,” it requested that consumers reset their two-factor authentication.
In subsequent contacts, the firm assured consumers that their cash was secure, generating suspicion that Crypto.com would compensate customers for any damages they may suffer.
According to a tweet from blockchain security service PeckShield on Monday, the losses might total up to $15 million in ether. Using a tweet, PeckShield stated that around half of the monies were being transferred to Tornado Cash to be “washed.” Tornado Cash claims to deliver “non-custodial anonymous transactions” on the Ethereum blockchain, which means it may conceal the location of cryptocurrency transfers. Another analyst from blockchain data company OXT Research claimed that the attack might have cost the exchange $33 million, which would be a significant loss.
If you’re wondering how much money Crypto.com lost, Marszalek told Bloomberg TV that the firm was still working on a post-mortem of the event, which will be publicized on the company’s blog “in the next few of days.”
Even though Crypto.com is the fourth-largest cryptocurrency exchange in the world, the company has been aggressively expanding its presence in the United States in recent months, with stunts such as viral advertisements starring actor Matt Damon and a $700 million purchase of the naming rights to the Los Angeles Lakers and Clipper’s arenas. It bills itself as the “fastest-growing” cryptocurrency exchange, and it just increased the size of its venture capital arm to $500 million to invest in early-stage firms in the area. However, the consequences of this week’s attack might cause part of its expansion in the United States to be halted.