|

Crypto.com releases security report after users lost $34 million

  • Crypto.com shared an investigation report into the security incident that affected 483 users on the exchange. 
  • Unauthorized withdrawals through a breach of the 2-Factor authentication infrastructure led to a loss of $34 million. 
  • The exchange reimbursed affected users and published a report outlining details of the incident. 
  • Regulators have yet to reach the exchange for details of security breach, CEO is prepared to offer reports. 

Crypto.com suffered a security incident, where users lost $34 million in Bitcoin, Ethereum and other cryptocurrencies. The exchange has reimbursed users and published a report of the incident. 

400 users lost funds in security incident on Crypto.com exchange

Crypto.com finished the investigation and published a report on the failure of its 2-factor authentication infrastructure and unauthorized withdrawals. The exchange revealed that 400 accounts suffered the security breach, and CEO Kris Marszalek is ready to share reports with regulators. 

Crypto.com price (the native token of Crypto.com exchange) increased after an investigation report was published. On Tuesday, Crypto.com users reported the loss of funds when cryptocurrencies were wiped out of their accounts. 

CEO Marszalek has confirmed that all customers have been reimbursed. Crypto.com revamped its 2-Factor authentication infrastructure to fight such security breaches in the future. Regulators are yet to reach out to the exchange, as the team remains prepared to share details of the security breach, loss of funds and their reinstatement. 

Crypto.com price had dropped in response to news of the security breach. Since the release of the report and CEO Marszalek’s assurance of new measures being implemented, there has been a recovery in the native token’s price. 

@DaCryptoGems, a pseudonymous cryptocurrency analyst, has evaluated the Crypto.com price trend. The analyst predicted that the token could confirm double bottom before price breaks through downtrend and starts a new uptrend. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Ethereum Price Forecast: Long-term holders' capitulation drives ETH below $1,800

Ethereum has fallen below $1,800 on Wednesday, the first time since May 2025 following accelerated spot selling pressure and distributions from long-term holders.

XRP and XLM outlook: Bearish streak extends as risk-off mood erodes retail demand, ETF flows

Ripple and Stellar prices face intense selling pressure, extending losses on Thursday for the fourth consecutive day this week. Cross-border remittance tokens are losing retail sentiment, while XRP faces additional pressure from Exchange-Traded Fund outflows. 

Bitcoin drops below $65K amid reinforced bear market signals

Bitcoin dipped further below $65,000 with onchain data from Glassnode signaling a market firmly in a bear phase. The decline has pushed prices back into a key valuation range between the Realized Price and the True Market Mean.

Grayscale launches Hyperliquid staking ETF, undercutting rival fees

Grayscale announced the launch of its Hyperliquid Staking ETF (HYPG) on Wednesday, now trading on Nasdaq. The fund offers investors direct exposure to HYPE and incorporates staking rewards, which the company claims have historically ranged from 2.2% to 2.3% annually.

Billions in ETF outflows don’t bode well
Bitcoin (BTC) remains under pressure, trading below $74,000 on Friday, and is set to post its third consecutive week of losses. The institutional sell-off continues, with spot BTC Exchange-Traded funds (ETFs) recording billions in outflows. In addition, sticky inflation and macroeconomic headwinds suppress the Crypto King’s upside potential. Institutional demand continues to weaken so far this week.