A well-known bitcoin exchange, Crypto.com, was recently hacked. The incident resulted in the theft of almost $30 million in cryptocurrency in the form of 4,836.26 Ethereum and 443.93 bitcoin.
What’s been going on with Crypto.com?
The incident occurred on January 17, 2022, however, the firm just reported it in a blog post on January 20, 2022. In it, the company detailed the issue, including how much cryptocurrency was stolen and how it handled the situation for its customers.
The ETH is currently worth $15.2 million, while the BTC is at $18.6 million, bringing the total to $33.8 million. That’s a significant sum of money collected from clients who buy and sell cryptocurrencies on the website. According to Crypto.com, everyone who had their funds stolen has been fully repaid, which is great news for the website’s subscribers. There were 483 users who were affected in total.
Of course, this is a big blow for the company, but it’s reassuring to see it standing up for its customers, especially because the attack was completely out of the users’ control.
According to Crypto.com’s blog post, the following happened:
What is Crypto.com doing about the problem?
In addition to reimbursing users, the company is beefing up its security measures to avoid a repeat of the occurrence. When dealing with a site where customers deposit huge sums of money, a hack can be tremendously damaging to client trust.
For starters, the company added an extra layer of protection by requiring a 24-hour wait between registering a new whitelisted withdrawal address and making the first transaction.
In addition, Crypto.com has developed a “Worldwide Account Protection Program,” which provides “additional protection and security for user assets held in the Crypto.com App and the Crypto.com Exchange.”
In essence, it protects funds if a third party gains unauthorized access to an account and withdraws funds without the user’s permission. For qualified users, it restores up to $250,000 (you must have specific items in place on your account, as explained in the company’s blog post).
It will be fascinating to see if Crypto.com can keep its consumers’ trust or if the hack leads them to seek out another bitcoin exchange. Even if it appears that the organization is taking the necessary steps to remedy the problem and prevent it from happening again, this isn’t always enough.
Read more: Opera has released a crypto browser in 2022.