No Users Suffered Losses On The Crypto.Com Hack Attack

No users suffered losses from the latest Crypto.com hack attack where $34 million were drained as we reported recently in our cryptocurrency news.

Crypto.com came in with an official statemetn regarding the latest attack on the platform and revealed that the incident affected nearly 500 people but they were refunded in total. Crypto.com disclosed that the monitoring systems of the trading platform detected unauthorized security on a smaller number of user accounts where the transactions were approved without the 2FA authentication but reportedly no users suffered losses.

The team suspended withdrawals of the tokens and initiated an investigation but the company also addressed the community about the attack. Crypto.com announced that the attackers affected 483 users and none of them experienced a loss of funds as the company prevented suspicious transactions or reimbursed the customers. The company also stated that the unauthorized withdrawals totaled about $34 million. Shortly after identifying the issue, the exchange migrated to a new two-factor authentication infrastructure and the company reminded that the mandatory 2FA policies on both teh frontend and backed to protect the investors in these incidents were up to date.

Crypto.com even introduced an additional layer of security to add a 24-hour delay between registration of the new whitelisted withdrawal address and first withdrawals. The team of the platform audited the entire process and connected with third-party security firms which performed, even more, checks and initiated threat intelligence services. The exchange vowed to provide more security features once it moves to Multi-Factor Authentication. The founder of the platform maintained that the customer’s safety is the highest priority for the company:

“While we are reminded of the existence of bad actors intent on committing fraud, this new Worldwide Account Protection Program, along with our new MFA infrastructure, gives our users unprecedented protection of their funds, and hopefully, peace of mind.”

While the crypto market is an interesting niche for many investors, those should be aware of cyber attacks and hackers that breach their accounts and holdings. The interoperability protocol PolyNEtwork was a victim of such a bad actor who drained $600 million worth of crypto and the platform even got exploited on Binance Smart Chain as the hacker drained the funds from three wallets. The event became known as the biggest hack in the DEFI space. A few days after the attack, the anonymous hacker transferred back most of the funds and rejected a $500,000 bounty offer saying he breached the security for fun.

At the end of 2021, Cream Finance also suffered a cyber attack and the perpetrators managed to steal over $130 million worth of crypto but this was also the third breach for Cream Finance in 2021.