Kris Marszalek, CEO of crypto exchange Crypto.com, confirmed the suspicious activity reported on Jan. 17 was indeed a hack that compromised more than 400 customer accounts.
What Happened: In an interview at Bloomberg’s Year Ahead virtual conference, Marszalek said the incident was a “great lesson” and Crypto.com would be continuously strengthening its infrastructure.
According to a post mortem report published by the exchange, unauthorized withdrawals totaled 4,836.26 Ethereum (CRYPTO: ETH) worth $15 million, 443.93 Bitcoin (CRYPTO: BTC) worth $19 million and approximately $66,200 in other currencies.
"Given the scale of the business, these numbers are not particularly material and customer funds were not at risk," said Marszalek.
In another statement earlier today, the Crypto.com CEO said that all 483 affected customer accounts had been fully reimbursed since the incident and there had been no loss of customer funds.
We just published full incident report which a sums up what happened and how we addressed it. All 483 affected accounts were fully reimbursed, ie. no customer loss of funds.
— Kris | Crypto.com (@Kris_HK) January 20, 2022
We’re also launching US$250,000 Worldwide Account Protection Program covering funds held with us. https://t.co/8SHGaaoaCn
The exchange said it has established a Worldwide Account Protection Program that will offer additional protection and security for funds held on the Crypto.com app and website.
WAPP will reportedly restore funds up to $250,000 for qualified users.
Price Action: As of Thursday morning, Crypto.com’s native token CRO (CRYPTO: CRO) was trading at $0.4455, up 2.8% in the last 24 hours. CRO has returned 411% over a period of one year.
Photo by Kanchanara on Unsplash.
