Crypto.com, the most popular digital bank in Asia-Pacific, was hacked, dealing a severe blow to its long-built public image, resulting in multiple customer reports of 2-5 ETH.
A small percentage of Crypto.com customers have had their accounts compromised. Although the company announced that no funds had been compromised, customers reclaimed their lost ETH on Twitter.
Entrepreneur and crypto enthusiast Ben Baller claims to have lost 4.25 ETH or $13,924 at press time.
Baller claimed he had two-factor authentication (2FA) enabled, suggesting the hack may have compromised the exchange’s security measures.
After some research, Baller recognize It turned out that within six hours, 5,000 ETH disappeared from the exchange’s ETH wallet, which equals about $16 million. Dogecoin co-founder Billy Markus has record “strange” activity on Ethereum Crypto.com wallet. Often 2-5 ETH were moved to new wallets.
Krypto.com confirm that no funds have been compromised. The company advises users to log back into the app and swap accounts to reset 2DA. User Matt Nutt, tweeted:
“When trying to set up 2FA, the error message ‘Sorry, an unexpected problem occurred. Please try again later or contact support via live chat or [email protected] “What’s happening?”.
Customer service replied as follows:
“Hello. Please send us a message with your referral code and your request. The team will be happy to assist you in setting up 2FA.”
Withdrawals have been paused but will be re-enabled once new security measures are implemented.
Smash the epic PR show 2021
The hack is not good PR for a company that has already made some big marketing moves in 2021. The company paid $700 million for the naming rights to the Staples Center, home of the Los Angeles Lakers.
Venue renamed Crypto.com Arena. The Crypto.com Visa Card has been launched in 40 countries. The company also launched an advertising campaign titled “Fortune Favors The Brave” starring Matt Damon.
Crypto.com offers its services through mobile applications and debit cards. Known as a neobank (a type of digital bank), the platform is the 7th most popular neobank in Asia Pacific (APAC) countries with 14 million customers by 2021.
Crypto.com holds 100% of user funds in offline cold wallets and uses an institutional solution from Ledger called Ledger Vault. It has insurance for more than $750 million stored in cold storage against physical threats and third-party theft.
At press time, Crypto.com’s native token CRO is down nearly 2% and trading at $0.44.
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