Crypto.com lost $18.82 million worth of Bitcoin in the latest hack, alleges analysts

Crypto.com lost $18.82 million worth of Bitcoin in the latest hack, alleges analysts
Crypto.com hacked

Key Takeaways;

  • Blockchain expert alleges 444BTC was stolen during crypto.com hack.
  • Crypto.com still silent on hack, fails to shed further light.

NIGERIA (CoinChapter.com) More and more blockchain security experts continue to endorse the alleged Crypto.com hack that led to the loss of $15 million of Ethereum’s native token Ether (ETH). Ergo, another high-quality, in-depth analyst of ongoing events in the Bitcoin ecosystem, alleged that an additional 444 BTC was moved from Crypto.com during the hack.

On the other hand, the exchange has denied any hack on Monday, resulting in any loss of funds. Crypto.com, in a tweet on Tuesday, likewise the CEO, Kris Marszalek, emphasized that no customers fund was lost.

However, in reaction to the exchange’s claims, blockchain security experts have waded into the allegations and have backed users that the exchange was attacked.

Blockchain security experts wade in allegations of crypto.com hack

Peckshield, a China-based blockchain security firm, wrote that Crypto.com actually lost $15 million of funds, “with at least 4.6K ETHs [Ether] and half of them are currently being laundered via Tornado Cash, a decentralized smart contract platform that allows users to conduct anonymous transactions on the Ethereum blockchain.

During an interview, the blockchain security experts said further that the true scale of the damage is “definitely worse.”

Scott Pounder, head of investigations at Crystal Blockchain, a crypto transaction analysis and compliance firm who also lent his voice to the hack, backed Peckshield’s assessment as accurate.

Pounder said, “The blockchain data shows that a “significant sum” was taken from Crypto.com and moved into one wallet, then rerouted to a mixer. “This chain of events is “a fairly clear sign that a hack (took) place” and that the attack was centralized, though it can’t be verified whether user funds were involved or not, Pounder said further.

Yong Li Khoo, a research analyst at blockchain analytics firm Nansen Alpha, said that he cross-referenced the data from other sources like CertiK, a platform that monitors blockchain protocols, and found that 282 user wallets were affected in the alleged breach.

In the late hours of Tuesday, Ergo alleged that an additional 444 BTC was moved from Crypto.com during the hack.

Ergo pointed at large outflows from the custodial wallet into ETH’s Tornado Cash and a well-known BTC tumbler.

Crypto.com silent insists no fund was lost

Initially, Crypto.com acknowledged that users complained of suspicious activities on their accounts. After that, however, the exchange slowed down, claiming that only a ‘small number’ of users reported such.

They noted that they would halt withdrawal to investigate and reiterated that all funds are safe.

Hours after, the exchange tweeted that to take caution, security on users’ accounts was being enhanced, and users should sign in back to their accounts and reset their 2FA. They said after the update, withdrawals would be re-enabled.

As promised, Crypto.com re-enabled withdrawals and thanked users for their patience. But unfortunately, the exchange failed to shed further light if there was an attempt to hack or a successive attempt to access its funds or users’ funds.

Crypto.com’s CEO Kris Marszalek thanked the users for their support, adding that the situation allowed the exchange to strengthen its setup. Additionally, he noted that no customers lost their funds in the process, with the exchange’s downtime limited to just around 14 hours.

Users of the exchange have continued to complain about not being able to access their account or withdraw funds hours after the exchange claimed to have fixed all the glitches.

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Crypto.com hack, Crypto.com lost $18.82 million worth of Bitcoin in the latest hack, alleges analysts

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