This Monday morning, the crypto.com, one of the largest cryptocurrency platforms in the world, has suspended withdrawals citing “suspicious activity”. Without giving too many details, many even thought that the company had been the victim of a hack, which was confirmed now by security company PeckShield.
According to the security company, at least 15 million dollars, or about 82 million reais have been drained from crypto.com, and the stolen funds are being laundered on a platform called Tornado Cash.
“The loss of Crypto.com was around $15 million with at least 4,600 ETHs stolen, half of which are being laundered in Tornado Cash”, says the post.
The @cryptocom loss is about $15M with at least 4.6K ETHs and half of them are currently being washed via @TornadoCash https://t.co/PUl6IrB3cp https://t.co/6SVKvk8PLf pic.twitter.com/XN9nmT857j
— PeckShield Inc. (@peckshield) January 18, 2022
Crypto.com suspends withdrawals
This morning, the Singapore-based cryptocurrency platform announced a temporary suspension of withdrawals. The platform justified the action citing “suspicious activities” that threaten the security of customers’ assets.
The platform posted an announcement on Twitter, stating that some users were reporting facts of unsolicited withdrawals.
“We have a small number of users reporting suspicious activity on their accounts. We will suspend looting while our team investigates. All funds are safe”, Crypto.com said in a statement.
Users report theft
Despite the company claiming that the funds were safe, some users of the platform mentioned theft.
“A few hours ago I wrote to you [Crypto.com] that 4.28 ETH was stolen from my account and I wonder how they got through two-factor authentication? This is savagery. After 4.28 ETH was withdrawn from my wallet, I started to check his ETH wallet. She has outflowed 5,000 ETH in the last six hours! So it’s not just a small number of users. It’s $16 million.”, tweeted one user.
The Crypto.com team said they are investigating the cause of the issue, but have not confirmed the hacking attack.
Crypto.com is one of the largest cryptocurrency platforms in the world, having partnered with many elite athletes around the world.
Crypto.com’s biggest sports sponsorship is the deal for the naming rights to the Staples Center in Los Angeles. The company also has partnerships with the UFC, Formula 1, NBA, esports team Fnatic and Serie A of Italy.