A caucasian hand holding a bitcoin

Crypto.com accounts hacked after data breach

Crypto.com, one of the world’s most-used cryptocurrency exchanges, has been the victim of a significant data breach.

Kris Marszalek, the CEO of Crypto.com, confirmed to Bloomberg that the breach had led to funds being stolen from approximately 400 user accounts.

At the time of writing, the total sum of stolen monies was unknown. However, Bloomberg reported an estimate of “in the millions.” While the data breach was a significant incident, Marszalek said that all losses were reimbursed to affected users and that Crypto.com had barely felt the hit due to its size.

Source and cause of hack unknown as Crypto.com investigates

Marszalek told Bloomberg: “Obviously, it’s a great lesson and we are continuously strengthening our infrastructure. Given the scale of the business, these numbers are not particularly material and customer funds were not at risk.”

Specific technical details of the breach have not yet been publicised. However, Marszalek promised a detailed breakdown of what happened will be made public in due course.

Technical vulnerabilities unusual for cryptocurrency exchanges

Cryptocurrency exchanges, and other crypto technologies like virtual wallets, are generally considered to be secure. Typically, security incidents affecting these platforms happen due to fraud or identity theft. It is highly unusual for hackers to identify and exploit technical vulnerabilities, which appears to have been the case here.

That said, cryptocurrency, which runs on blockchain technology, allowing a degree of anonymity and making it virtually impossible to retrieve stolen funds, remains an attractive target for cybercriminals.

Huge rise in crypto crime in 2021

This notion is backed up by industry figures.

According to Chainalysis, crypto crime rose 80% in 2021. Cryptocurrency totalling $14 billion (£10.3 billion) found its way to “illicit addresses” in 2021, up from $7.8 billion (£5.75 million) in 2020.

While these figures are vast, only around 0.15% of all cryptocurrency transactions were thought to be fraudulent. Chainalysis said that total transactions across all cryptocurrencies grew a massive 567% against 2020’s then-record volume. The company put the value of these transactions at $15.8 trillion (£11.66 trillion) in 2021.

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