Crypto exchange crypto.com has been hacked, leaving hundreds of users with missing ETH. The total loss is reported to be $15 million.
The attack was acknowledged by the exchange on the evening of Jan. 16, during which the company paused withdrawals for an investigation and insisted that all funds are safe.
The hacker reportedly bypassed two-factor authentication and withdrawal whitelists, which has raised eyebrows because hacking these systems would be incredibly difficult. 🤔 crypto.com also is SOC2 compliant, which supposedly makes it “the most secure crypto platform worldwide.“
This loss puts the exchange’s credibility to test. crypto.com’s CEO Kris Marszalek indicated that “no customer funds were lost,“ despite the fact that renowned crypto auditing companies such as Peckshield and Certik proved that this is untrue. Scores of customers complaining of missing funds have indicated that the company, which has spent billions to acquire the naming rights to the former Staples Center in LA and celeb TV spots, has not replaced the stolen crypto. (Because, as we have already heard… the funds are safe!) 🙄
The crypto.com hack comes in at #29 on the Rekt News leaderboard, a leaderboard which tracks the biggest thefts in crypto. This is by no means the biggest hack in crypto history, but it is one of the largest from a credible crypto exchange. The only hack of a centralized exchange (CEX) larger than today’s crypto.com hack was the Kucoin hack on Sept. 29, 2020, ranked #12. Nonetheless, it’s unbecoming of a multi-billion dollar CEX to leave their customers out to dry… other CEXes who have failed to side with customers have been rightfully scrutinized.
The world of crypto is risky, but it is transparent. Considering the credible testimony of crypto industry leaders, we know that crypto.com is lying about being hacked and has not indicated whether or not it will replace the lost funds of compromised users.
The broader crypto market was down today. 👎