Crypto.com, a well-known cryptocurrency exchange, was recently hacked. Over $30 million in cryptocurrency was taken in the form of 4,836.26 Ethereum and 443.93 bitcoin as a result of the breach.
What Has Been Happening at Crypto.com?
The incident happened on January 17, 2022, and the corporation only announced it on January 20, 2022, in a blog post. The corporation addressed the incident in it, detailing how much cryptocurrency was stolen and how it handled the matter for its subscribers.
The current value of the ETH is $15.2 million, while the current value of the BTC is $18.6 million, bringing the total to $33.8 million. That’s a lot of money taken straight from customers who purchase and trade cryptocurrency on the website.
Crypto.com states that everyone who had their monies stolen has been fully reimbursed for their huge losses, which is good news for the website’s users. In total, 483 users were affected.
Of course, this is a major setback for the company, but it’s encouraging to see that it stood up for its consumers, especially because the attack was wholly beyond the control of the users.
Here’s what Crypto.com says happened, according to the blog post:
What is Crypto.com doing to address the issue?
Aside from recovering payments to users, the corporation is also beefing up its security measures to avoid a repeat of the incident. A hack can be extremely harmful to client trust, particularly when dealing with a site where users are depositing large sums of money.
First, the corporation introduced an extra degree of security by requiring a 24-hour wait between registering a new whitelisted withdrawal address and making the first withdrawal.
Crypto.com has also launched a “Worldwide Account Protection Program,” which it describes as “extra protection and security for user funds held in the Crypto.com App and the Crypto.com Exchange.”
In essence, it safeguards funds in the event that a third party acquires unlawful access to an account and withdraws funds without the user’s authorization. It restores up to $250,000 for qualified users (to qualify, you must have certain items in place on your account, as detailed in the company’s blog post).
It will be interesting to see if Crypto.com can maintain its users’ trust or if the attack prompts them to look for another bitcoin exchange. Although it appears that the organization is taking the appropriate steps to resolve the issue and prevent it from recurring, this isn’t always sufficient.