Crypto.com Halts Transactions Following Suspicious Activity

Withdrawals have been restored as Crypto.com CEO insists that “all funds are safe.”

Crypto.com Halts, Re-enables Withdrawal Service 

Crypto.com suspended withdrawals on its exchange after some traders reported suspicious transactions. Following users complaints, the cryptocurrency wallet provider and trading platform halted withdrawals for 12 hours before restoring the service in the early hours of Tuesday, January 18. 

Founder of Dogecoin, Billy Markus, prompted the cryptocurrency exchange to halt all transactions. Billy noticed odd activity on one of the Ethereum wallets on the platform, which he posted on his official Twitter account, replying to Crypto.com’s tweet on January 17. 

“We have a small number of users reporting suspicious activity on their accounts. We will be pausing withdrawals shortly, as our team is investigating. All funds are safe,” Crypto.com wrote on Twitter. 

Before Billy’s observation, many users, including Jeweler and Entrepreneur Ben Baller, had voiced their discontent on social media that their crypto assets had recently disappeared from their Crypto.com accounts. However, Ben later tweeted that his funds had been restored, moments before Crypto.com re-enabled the withdrawal service. 

Following the unauthorized activities experienced by some users, Crypto.com instructed users to sign back into their applications, exchange accounts, and reset their Two Factor Authentication (2FA). Before withdrawals were re-enabled, the protocol also disclosed via Twitter that its system would be updated, ensuring that security measures are enhanced on all accounts. 

“This update will be rolled out to users progressively over the next few hours. Once complete, withdrawals will be re-enabled. We understand this may be an inconvenience, but security comes first,” Crypto.com tweeted about the update before restoring the withdrawal service.  

CEO Says “All Funds Are Safe”

Earlier today, blockchain security and data analytics company, PeckShield reported that Crypto.com lost about $15M from the suspected unauthorized activity. However, Crypto.com CEO Kris Marszalek claims that no customer funds were lost. 

Kris took to Twitter to share his thoughts on the incident, stating that the Crypto.com team has strengthened the protocol’s security. He also wrote that a report would be published after an internal investigation. 

“Some thoughts from me on the last 24 hours: No customer funds were lost, the downtime of withdrawal was ~ 14 hours, our team has hardened the infrastructure in response to the incident. We will share a full post mortem after the internal investigation is completed,” Kris tweeted on Tuesday, January 18. 

The CEO also expressed his happiness through Twitter, adding that the support received from the community during the setback was tremendous. He also stated that the incident allowed the exchange to strengthen its security further. In the meantime, Kris promised that Crypto.com would learn, improve, and move on from the incident, ensuring that users enjoy the best trading experience. 

Source : bsc.news