Crypto.com CEO confirms 400 accounts hacked, analysts say $33m stolen

By Jesse Coghlan
January 20, 2022 0

Kris Marszalek, CEO of one of the top crypto exchanges, Crypto.com, has confirmed on Bloomberg TV that 400 user accounts were hacked earlier this week after several layers of the exchanges’ security were breached.

Overnight on Monday, Crypto.com suspended withdrawals on its platform due to some users reporting “suspicious activity” on the accounts. Subsequently, all users were required to sign back into their accounts and reset their two-factor authentication.

The suspension of withdrawals lasted 14 hours, with Marszalek stating at the time that “no customer funds were lost”. This point was reiterated further in his recent interview, stating “all the accounts that were affected were fully reimbursed, so there was no loss of customer funds.”

When asked on the value of the assets lost, Marszalek said that Crypto.com was still analysing the incident, and that a blog post with the final numbers on how much was stolen would be posted “in the next couple of days”.

Blockchain analysis firm, PeckShield, reported at least 4,600 Ethereum was withdrawn from Crypto.com and put into a crypto tumbler. Pseudonymous blockchain analyst, ErgoBTC, reported 444 Bitcoin was also taken.

If accurate, the total amount would equate to around $34 million. US$15 million in Ethereum when the hack took place, and close to US$19 million in Bitcoin.

A cryptocurrency tumbler is a service which mixes identifiable cryptocurrency transactions with others with the goal of obscuring the source of the funds, such a service has been used in other crypto exchange hacks.

Marszalek emphasised that “given the scale of the business, these numbers are not particularly material and customer funds were not at risk.”


Jesse Coghlan

Journo for CryptoVista - reporting on all things crypto, NFT, blockchain, metaverse, and DeFi.

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