Crypto.com Suspends Withdrawal Services Following Alleged Hack

In the light of several reports of suspicious activities on users’ accounts, the leading cryptocurrency payments provider, Crypto.com, has announced that it will be suspending its withdrawal services.

In a tweet on Monday, Crypto.com noted that it has received a number of reports from its users alleging that their Crypto.com wallets have been compromised and funds transferred out of them.

Customers’ Funds “Safe”; Or Are They?

Per the announcement, the exchange pointed out that its team is conducting every necessary assessment to efficiently determine the issue, adding that users do not need to panic as their funds are safe.

“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.”

However, several users have come up with claims of large amounts of crypto being moved from their accounts, questioning the safety of these funds.

Popular jeweler, crypto enthusiast, and entrepreneur, Ben Baller, revealed that he lost about 4.28 ETH, worth over $14,000 at the time of writing.

Interestingly, Ben noted that he had enabled two-factor authentication on the account. Therefore, to get past the 2FA, the hackers must have bypassed some of the exchange’s security protocols.

Billy Markus, co-founder of the popular memecoin, DOGE, pointed out a strange pattern of transactions being carried out via Etherscan.

“I see odd activity on one of the Ethereum hot wallets on https://t.co/AbuAAkBxG1 – https://t.co/7l7MgCLnoG

It’s a pattern, the wallets receiving look like this https://t.co/2Gf48D3fqm, multiple of the same transactions to a new wallet between 2-5 ETH, funds not moved after that,” he tweeted.

Currently, the actual cause of the exploit is yet to be determined. However, the exchange noted that its team is working on resolving the issue.

Just yesterday, Crypto.com announced that it has signed a new partnership deal with the Australian Football League (AFL), a deal that is scheduled to last for five years.

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