Crypto.com stops all transactions after suspicious activity

On today’s cryptocurrency news, Crypto.com suspends all transactions after some users noted they’ve encountered some suspicious activities on their account on January 17, 2022. 

Moreover, the founder of Dogecoin, Billy Markus, also prompted the exchange site to stop operations after he noticed a doubtful transaction pattern on Etherscan, the block explorer. The halted operation lasted for 14 hours and it allowed Crypto.com to investigate what happened as well as improve their security measures.

Not long after the incident, Crypto.com themselves posted a tweet stating that the assets of the accounts involved are reportedly safe. Furthermore, they also said in the same tweet that the company is investigating what happened. 

Although a statement was released on Monday, January 17th, it didn’t provide in-depth details of what happened. However, the company promised to release a full incident report after investigations are finished. 

Musician, actor and jeweller, Ben Baller shared his experience onto Twitter by replying to the initial tweet that Crypto.com posted, saying ‘I messaged yah guys hours ago about my account having 4.28ETH stolen out of nowhere and I’m also wondering how they got past the 2FA?’ 

The latest update on the issue came PeckShield which is a blockchain security firm. Upon checking the blockchain data, the firm discovered that over 4,600 ETH which is equivalent to over 14 million USD is being laundered via Tornado Cash.

Tornado Cash is an Ethereum privacy protocol that is aimed towards improving transaction privacy. It achieves this by interrupting the on-chain link between the destination and source addresses.

Throughout this incident, Crypto.com promised that all the funds of their users are safe and that they haven’t officially confirmed that a hack has happened. Instead, they’re continuously investigating internally so that they can release a more detailed statement regarding this incident.

As of the time of writing, Crypto.com is one of the most prominent exchange sites in the market with a recorded user count of over 10 million. Unfortunately, cyber crimes in exchange sites are not new to the industry as there have been other platforms that have fallen victim to hacks and security breaches. 

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