At approximately 2am EST on Jan 17/22, CRYPTO.COM revealed on their official Twitter page that users have been reporting suspicious activities. All withdrawals were suspended indefinitely. If you've tried to open to your crypto.com app recently, you may have also noticed that you were required to login.
At approximately 7am EST, crypto.com provided another update via their official Twitter, stating that a small number of users have experienced unauthorized activity, but all funds are safe.
All users are required to log back in to the crypto.com app and Exchange app (if applicable) and reset their 2FA (2-factor authentication). At the time of posting, there have been multiple reports of issues with resetting 2FA. The app seems to be unable to confirm the 2FA and asks you to contact support. At this time it may be worth waiting a day or so prior to attempting to reset 2FA, as you are unlikely to get through to support at this time.
Lastly, crypto.com has stated that they are rolling out a security update in the next few hours, after which, withdrawals will be re-enabled.
In terms of official communication, this is all we have heard from crypto.com at the time of writing.
What should I do if I have a crypto.com account? The answer is simple: Login, check your balance to make sure everything is there and check your transaction history (on your wallet tab) to make sure there are no suspicious transactions. If there is anything out of place, contact support.
While this is obviously a developing story, let's briefly discuss what this means and the implications.
First things first, obviously a security breach is a bad sign for crypto.com. But ultimately, the most important aspect of this situation will be how they respond. Crypto.com has already assured members that all funds are safe. It will be important to see how the company potentially reimburses any lost funds from those users who have been affected.
Another very important fact to note is that crypto.com is insured for $750 million according to their website. While a security breach is never a good thing, the fact that crypto.com has the backing of insurance is a good sign for how they are able to rectify this situation.
Lastly, crypto.com's native token CRO does not appear to have much significant activity over the past 10 hours (according to CoinMarketCap) since this hack was revealed, though the value had already been on a downward trend this week.
And that is all we know at this time. I will likely write add an updated post once this entire situation is done and dealt with.
Not financial advice.
