In a recent blog post, Crypto.com comments on the hacker attack that temporarily crippled the US trading platform a few days ago. According to their own statements, the wallets of 483 Crypto.com users were attacked. This allegedly resulted in unauthorized withdrawals of 4,836.26 ETH, 443.93 BTC and $66,000 in other cryptocurrencies. The total amount of damage now amounts to around 33 million US dollars and is around twice as high as expected. So far, the CRO course has not been impressed.
In this press release, the company claims to have “prevented unauthorized withdrawals in most cases, and in all other cases, customers have been fully reimbursed”.
On January 17, around 1:46 a.m. German time, an attack against the Crypto.com system was detected. Attackers reportedly managed to bypass two-factor authentication. Crypto.com’s IT department observed that the transactions were approved without being approved by the 2FA check by the respective users. As reported by BTC-ECHO, victims’ complaints via Twitter have increased at the same time.
According to Crypto.com, payment for all tokens was immediately suspended. Overall, the attack caused the payment infrastructure to fail for a total of 14 hours. The platform has been online again since January 18, 2022 at 5:46 p.m. In an interview with Bloomberg the next day, Crypto.com CEO Kris Marszalek said that “customer deposits were never at risk.”
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And now?
In the longer term, according to Crypto.com, the company would like to introduce multi-factor authentication (MFA). Along the way, you want to adapt the system to different security precautions. The company has already completed the first update. There is now a 24-hour delay between the registration of a new payment address on the platform’s whitelist and the first payment. Additionally, users should receive notifications about adding payment addresses in the future. These would also include “helpful reminders and instructions on how to get in touch [dem Crypto.com] Team if address whitelisting was not allowed” included.
The WAPP (Worldwode Account Protection Program) must then be introduced. This is a type of insurance designed to “restore funds up to $250,000 for qualified users”.
Crypto.com is known for its obviously aggressive marketing strategy. In the past, they have acquired the advertising rights to 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 appropriate measures.
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