HomeCrypto.comCrypto.com Hack May Be Worth $33M

Crypto.com Hack May Be Worth $33M

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Inital reports stated that the recent security breach at Crypto.com has cost the company more than the $15 million. According to an Onchain expert, Crypto.com’s security vulnerability was worth more than $15 million if someone discovers it. 

Based on OXT Research’s pseudonymous ErgoBTC, an on-chain expert, Crypto.com’s security compromise, which resulted in the loss of 4.6K ETH ($15 million), may be worth as much as $33 million. Crypto.com’s security compromise resulted in the loss of 4.6K ETH ($15 million). 

Reports on the Security Breach

According to reports, Crypto.com temporarily halted withdrawals on Monday after a small number of users reported suspicious behavior on their accounts. Reports of stolen 4.6K ETH ($15 million) from the cryptocurrency exchange Tornado Cash. It surfaced in the cryptocurrency community which the exchange quickly responded to by restarting withdrawals and certifying that its users’ funds were safe. 

In a report published on Tuesday, ErgoBTC stated that hackers had looted the payment wallet of Crypto.com of an additional 444 BTC ($18.5 million). According to ErgoBTC, OXT Research discovered a suspicious 52.55 Bitcoin ($2.18 million) transaction from Crypto.com’s custodial wallet. The company immediately investigated this.

How the Hack happened

According to an ErgoBTC statement, hundreds of users made withdrawals as a result of the transaction. This resulted in four outputs, each worth 67.75 BTC ($2.81 million), according to the statement. There were two batches of 271 BTC ($11.25 million). The system transmitted each of the batches through Bitcoin tumbler. The Bitcoin Tumbler is a service that allows clients to aggregate multiple transactions in order to make it more difficult for investigators to track down the Bitcoin transfer recipients. 

ErgoBTC, the North Korean cybercrime organization, claimed in a tweet that the hackers washed the 271 BTC in a Bitcoin tumbler. It is similar to the one the suspects for the crime used.

According to ErgoBTC, the criminals responsible for the Crypto.com security breach also had access to a specific address. This address was reported to be containing 172.9 bitcoins ($7.25 million). Blockchair data said that the hackers received the payments at the same time they received the other transactions associated with the hack.

Crypto.com’s Current Status

However, as of the time of publishing of this news, the suspected hacker had not yet transferred the funds. They are expecting the hacker will do so via a Bitcoin tumbling service. As of the moment of publishing of this story, Crypto.com had not yet recognized any losses. Despite repeated attempts, Cointelegraph was unable to obtain any information about Crypto.com’s decision. It was to suspend withdrawals from its network at the time of writing. When new information becomes available, Cointelegraph will add it to its article as soon as possible.

“The opinions Avoiced in this Cryptocurrency news article are solely those of the individuals quoted or interpretations of the author. These opinions & interpretations are not necessarily endorsed by Your Crypto Banker or its subsidiaries.”

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