Audit Firm Claims Crypto.com Lost $15M in Incident As Users Report Suspicious Activity – Bitcoin News

Crypto.com, a leading cryptocurrency exchange, had an incident on January 17 when some of its users reported strange activity in their accounts. The exchange acknowledged the incident and immediately launched an investigation, declaring that all funds are safe. However, reports from security and blockchain auditing firms Certik and Peckshield indicate that some funds have been removed from exchange wallets.

Crypto.com suspends withdrawals after reporting suspicious activity

Crypto.com, a cryptocurrency exchange, pause Normal withdrawal operations after a customer reports suspicious activity on their account. In its first statement, the exchange told customers that all funds are safe. These reports enhance the security measures used to access accounts, and all customers must log back into their accounts. Additionally, two-factor authentication (2FA) must be reset for all accounts.

Some customers complain About not being able to reset their two-factor authentication keys, while others claim they are unable to So visit the exchange. After the exchange resumed withdrawals, Kris Marszalek, CEO of Crypto.com, provided a report on what happened, stating that the total downtime of the withdrawal infrastructure was around 14 hours. The exchange has introduced a new security measure: customers will not be able to withdraw from whitelisted addresses for the first 24 hours after registering on the platform.

Mazarek reiterate No user funds were lost, and the company will provide a full autopsy following the investigation.

Blockchain Audit Firm Reports Otherwise

While Crypto.com has repeatedly stated that no user funds were affected, there are conflicting accounts on the issue. Certificate and Peckshield, two security and blockchain audit firms reported otherwise.pecking the shield statement The exchange lost $15M or 4.6K Ethereum During the campaign, half of these funds were laundered using Tornado.cash, an anonymity-based protocol that allows users to conduct private transactions.

Certik, another audit firm, confirm A report by Peckshield reporting that funds are being sent to Tornado.cash. More importantly, Certik informed Followers compiled a list of user addresses allegedly affected in the incident, along with the amount of ether deducted from each account. The company said 282 accounts were affected.

The cause of the incident remains unknown. Neither Peckshield nor Certik has finally announced what happened, and Crypto.com is still conducting an internal investigation into the matter at the time of writing.

What do you think of the suspicious activity experienced by Crypto.com’s customers? Let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist in Venezuela. He describes himself being late to the game, entering the crypto space when prices rose in December 2017. With a computer engineering background, living in Venezuela, and being affected by the cryptocurrency craze on a social level, he offers a different perspective on the success of cryptocurrencies and how it can help the unbanked and underserved.

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