Crypto.com says breached user accounts held $34 Million

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The digital asset platform Crypto.com said the customer accounts hit this week by unauthorized withdrawals held about $34 million in cryptocurrencies and cash.

In a report released Thursday, the private company said that 4,836.26 Ethereum, 443.93 Bitcoin and $66,200 were stolen during the security breach on Tuesday. All customers have been fully reimbursed, the Singapore-based platform reiterated.

The crypto exchange, which has more than 10 million users, suspended activity for 14 hours to investigate the unauthorized withdrawals from 483 customers. The platform was the latest of many over the years to suffer disruptions by hackers exploiting network vulnerabilities.

The firm’s insurance policy and account protection program cover users “in rare instances” of security breaches, Chief Security Officer Jason Lau said in the statement.

Crypto.com has not received any “outreach” from regulators following the breach, according to CEO Kris Marszalek.

During an interview at Bloomberg’s Year Ahead virtual conference, Marszalek said he is prepared to share information on the hack if any relevant inquiries come from regulators.

“Obviously, it’s great lesson, and we are continuously strengthening our infrastructure,” Marszalek said during the interview.

The firm, which moved its headquarters from Hong Kong to Singapore last year, is currently awaiting license approval from the Monetary Authority of Singapore, or MAS.

The MAS “is aware of the cyber security breach at Crypto.com and is following up with the applicant,” a spokesperson for the central bank said in an emailed statement without providing further detail.

The MAS prohibited public advertising of crypto products earlier this year. Crypto.com was among the firms affected after placing a large billboard on a prominent shopping strip. Advertising practices of the crypto industry have come under scrutiny as opponents worry retail investors could buy into the asset class with limited understanding of risks.

“Singapore is very supportive of blockchain technology and cryptocurrency industry in general,” Marszalek said. “It’s a great place for the industry players, and there’s quite a large number of players there.”

One of largest exchanges with more than 10 million users, Crypto.com made headlines after it bought the sponsorship rights to the iconic sports and entertainments arena in Los Angeles formerly branded as the Staples Center. It is also running a major marketing campaign with actor Matt Damon and various professional sports teams.

—Additional reporting by Chanyaporn Chanjaroen

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