In a recent blog post, Crypto.com comments on the hacker attack that temporarily paralyzed the US trading platform a few days ago. According to their own statements, the wallets of 483 Crypto.com users were attacked. This would have resulted in unauthorized withdrawals of 4,836.26 ETH, 443.93 BTC and $66,000 in other cryptocurrencies. The total amount of damage is now about $ 33 million and is about twice as high as previously believed. The CRO course has been largely unimpressed so far.
In this release, the company assures that they have “prevented unauthorized withdrawals in most cases and have refunded customers in full in all other cases.”
On January 17, at approximately 1:46 a.m. German time, an attack on the Crypto.com system was detected. The attackers would have managed to bypass two-factor authentication. Crypto.com’s IT department saw that transactions were approved without being approved by the respective users through 2FA checking. At the same time, as BTC-ECHO reported, victims’ complaints via Twitter increased.
According to Crypto.com, payment of all tokens was immediately suspended. Overall, the attack caused the payout infrastructure to go down for a total of 14 hours. The platform has been live again since January 18, 2022 at 5:46 PM. In an interview with Bloomberg the following day, Kris Marszalek, CEO of Crypto.com, said that “customer deposits were never at risk”.
In the longer term, according to Crypto.com, the company would like to introduce multi-factor authentication (MFA). Along the way, you’ll want to adapt the system to different safety measures. The company has already completed the first update. There is now a 24-hour delay between registering a new payout address on the platform’s whitelist and the first payout. In addition, users should receive notifications about the addition of payout addresses in the future. These also include “helpful reminders and instructions for getting in touch [dem Crypto.com] Team if whitelisting addresses was unauthorized” included.
The WAPP (Worldwood Account Protection Program) will then be introduced. This is a type of insurance policy designed to “recover credits of up to $250,000 for qualified users.”
Crypto.com is known for its remarkably aggressive marketing strategy. In the past, they acquired the advertising rights of the famous Staples Center in Los Angeles, currently sponsor Formula 1 and the Italian football league Serie A and advertise with actors such as Matt Damon.
It remains to be seen whether the hacker attack will have a negative effect on the image of the trading platform – Crypto.com is now focusing on (re)building community trust with the right measures.
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