Blockchain

Crypto.com Breach Could Be Worth Up to $33M, On-Chain Analyst Says

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Onchain analysts claim that the loss of Crypto.com in the latest security breach may exceed the reported $15 million.

An on-chain analyst pseudonym ErgoBTC of Bitcoin (BTC) research firm OXT Research has claimed that the alleged Crypto.com security breach resulted in the loss of 4.6K ETH ($15 million), which could be worth as much as $33 million.

On Monday, it was reported that Crypto.com has stopped withdrawals “After a small number of users’ accounts experienced suspicious transactions. The cryptocurrency exchange has since resumed withdrawals and confirmed that its users’ money is “safe,” but it was later reported that it lost 4.6K ETH ($15 million) and was using Tornado Cash for money laundering .

Another 444 bitcoins ($18.5 million) were stolen from Crypto.com’s payment wallet, ErgoBTC said on Twitter on Tuesday. ErgoBTC says OXT Research found a suspicious trade 52.55 BTC ($2.18 million) from Crypto.com’s escrow wallet.

According to ErgoBTC, after the transaction was completed, “hundreds of withdrawals” were combined into four outputs, each worth 67.75 BTC ($2.81 million). The four batches totaled 271 bitcoins ($11.25 million), all of which were washed through bitcoin tumblers — a service that allows customers to consolidate several transactions, making it harder for investigators to trace bitcoin transfers.

Bitcoin tumbler allegedly used by perpetrators to launder 271 BTC is a well-known tool North Korean cybercriminal group, Lazarus, according to ErgoBTC’s tweet.

According to ErgoBTC, the criminals behind the Crypto.com security breach also took control of another address holding 1.729 BTC ($7.25 million). Blockchair data shows that the address received funds at about the same time as other transactions related to the Crypto.com hack. However, as of the time of this article’s publication, the alleged hackers have not moved the funds through the Bitcoin tumbling service.

related: ImmuneFi reports $10B in DeFi hacks and losses in 2021

At the time of publishing Crypto.com, no loss has been admitted. Cointelegraph reached out to Crypto.com for more details on its decision to halt withdrawals, but had not heard back as of press time. This article will be updated pending new information.