Popular cryptocurrency trading platform and wallet service provider, Crypto.com is taking all precautions as some of its user’s accounts might have been exposed unduly. As unveiled by the exchange on its official Twitter profile, some of its users are reporting suspicious activities on their accounts, with a few having suffered one form of loss or the other as gleaned from the responses to the tweet.
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 (@cryptocom) January 17, 2022
The immediate response of Crypto.com was to shut down the withdrawals on its page to avoid undue movement of funds. Perhaps the response might have come fairly late as one of its users, Ben Baller, a crypto entrepreneur and jeweler said about 4.28 ETH (worth approximately $13,800) has already been stolen from his account.
What is even more disturbing about Ben Baller’s experience was that the funds were taken despite the fact that he activated 2-factor authentication on Crypto.com, a breach that is likely part of the investigation the exchange says it is conducting. There was no timeline given with respect to the withdrawal blackout, and with the current agitation by the trading platform’s community, many are interested in knowing the extent of the breach.
New Year, New Security Hurdles
It is not unusual for a popular crypto wallet service provider like Blockchain.com to be down, as the more sophisticated the digital currency ecosystem gets, the more advanced are the schemes that are being devised to target users’ funds.
It is a new year already, and the ecosystem has started getting massive pricking from hackers in a move that suggests the industry might break the record for the hacks and protocol breaches that were recorded back in 2021.
As TheCoinRise reported, dYdX, an emerging decentralized exchange suffered a protocol breach, an impact of which was felt in its native token that saw massive price plunges. BitMart exchange was also not spared from the incessant attacks as the trading platform lost over $196 million, exploited through security keys.
Other projects that suffered protocol and security breaches include Ethereum Name Service whose auction was halted because of a bug, Solana, Ethereum, and the interoperability DeFi platform, Poly Network, which lost and recovered over $600 million of stolen funds. The frailty of the security design of the digital currency ecosystem remains a major reason why regulators from around the world are still largely skeptical about citizens investing in the ecosystem as a whole.
Proponents argue that the space is still growing, and more effort is being applied in ensuring investors’ funds are as safe as it is in traditional finance.