CEO Kris Marszalek of crypto.com confirmed that a recent hack compromised around 400 accounts. This comes after multiple users on the popular cryptocurrency exchange app alleged they suffered stolen account funds. Until now, the company met such complaints with vague responses.
Users grew wary of a hack when their accounts suddenly required two-factor authentication to sign in. The hackers stole 4,600 ETH, which is currently valued at around $15 million USD. Marszalek ensures they’ve reimbursed all accounts. saying “given the scale of the business, these numbers are not particularly material and customer funds were not at risk.”
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Further, Peckshield, a blockchain security provider, claimed half the funds were sent to Tornado Cash to be “washed.” Tornado Cash provides “non-custodial anonymous transactions” on the Ethereum blockchain. Essentially, this means Tornado Cash lets the hackers hide where crypto is being sent.
Crypto.com is the world’s fourth-largest crypto exchange platform. Recently, they’ve lobbied for growth in the U.S. market. This includes viral ads as well as a $700 million USD purchase of the naming rights to the Los Angeles Lakers and Clippers arena. The fallout from this hack could threaten to stall some of the company’s growth stateside.
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