Crypto.com stops withdrawals after suspicious activity

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Cryptocurrency exchange and digital wallet Crypto.com has temporarily suspended withdrawals due to fears of “suspicious activity”, according to a post shared by the company on Twitter.

Dogecoin founder Billy Markus was the first to post about the unusual business model and flagged the issue on Twitter.

While the company assured users on Sunday evening that “all funds are safe”, some on Twitter were quick to criticize the company – and allege that their wallets had been hacked.

Most of these users are now reporting that their funds have been restored to their wallets.

Crypto.com forwarded a series of tweets to the Post on Tuesday indicating that no customer funds had been lost and that some company infrastructure allowing withdrawals had been down for about 14 hours.

“Our team has reinforced infrastructure in response to the incident,” the Crytpo.com statement reads, promising a full autopsy after an investigation is complete.

A crypto user with nearly 350,000 Twitter followers, who posts under the handle @BENBALLER complained that 4.28 ETH was sold and wondered how a hacker managed to pass the two-factor authentication that is supposed to make accounts more secure.

He then shared that his wallet was refunded.

We have a small number of users reporting suspicious activity on their accounts.

We will be suspending withdrawals shortly as our team is investigating. All funds are safe.

— Crypto.com (@cryptocom) January 17, 2022

It is still unclear how hackers got past Crypto.com’s security. But a blockchain security firm, PeckShield Inc., claimed that up to $15 million worth of Ether was stolen from users’ wallets.

The most recent snafu highlights the difficulties facing crypto businesses. According to data from security software company ImmuneFi, more than $10.2 billion worth of crypto has been stolen, as hacks and scams remain prevalent in the cryptocurrency world.

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