$34 million taken in Crypto hack admits Crypto.com
Owing to a compromise in two-factor (2FA) authentication, 483 users on Crypto.com’s platform lost almost $34 million in various digital coins. The leading crypto currency platform Crypto.com has finally admitted of the hack.
The company has suspended all withdrawals on the platform for the duration of the investigation and any accounts found to be impacted were fully restored.
Cyberattacks on crypto currency are not new. Users of one Japanese exchange lost $97 million to hackers in August. Even as far back as 2014, when crypto currency was in its infancy, a theft of $400 million permanently shut down Mt. Gox.
In the latest report, the company said that overall, the unauthorized withdrawals had over $15 million worth of Ethereum, $19 million worth of Bitcoin and $66,200 in “other currencies”.
On January 17, the crypto platform said that its risk monitoring systems detected unauthorized activity on a small number of user accounts where transactions were being approved without the 2FA authentication control being inputted by the user.
Crypto.com said it revoked all customer 2FA tokens and added additional security hardening measures, which required all customers to re-login and set up their 2FA token to ensure only authorized activity would occur.
“No customers experienced a loss of funds. In the majority of cases, we prevented the unauthorized withdrawal, and in all other cases customers were fully reimbursed,” the company said.
The company said that it introduced an additional layer of security on January 18 to add a mandatory 24-hour delay between registration of a new whitelisted withdrawal address, and first withdrawal.
Crypto.com said that it is introducing the worldwide Account Protection Program (APP) that offers additional protection and security for user funds held in the Crypto.com App and the Crypto.com Exchange.
Earlier Kris Marszalek, CEO of Crypto.com which is endorsed by famous Hollywood actor Matt Damon, had confirmed that hundreds of user accounts were hacked and their funds were stolen.
[With Inputs from IANS]
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