Crypto.com Hacked, Ethereum, Other Cryptocurrencies Cleared From Accounts, Regulators Missing

Crypto.com has received no “outreach” from regulators after a cybersecurity breach affecting approximately 400 customer accounts earlier this week

According to Chief Executive Officer Kris Marszalek, Crypto.com has received no “outreach” from regulators following a cybersecurity breach affecting approximately 400 customer accounts earlier this week. During an online interview at Bloomberg’s Year Ahead virtual conference, Marszalek from Singapore said he is willing to share information about the hack if relevant questions arise from regulators.

The company became the latest crypto exchange to be hit by online thieves on Tuesday after users reported that Ethereum and other cryptocurrencies had been wiped from their accounts. All customers have been reimbursed, Marszalek said.

“Obviously it’s a great lesson and we’re constantly strengthening our infrastructure,” Marszalek said during the interview. “Given the size of the company, these numbers aren’t particularly material and customer money was not at risk.”

An exact value of the affected cryptocurrencies is still unknown, although estimates run in the millions. Marszalek said Crypto.com plans to release more information in a blog post in the coming days. System hacks have been a persistent problem since the earliest days of cryptocurrencies, with rouge programmers examining protocols’ software code for vulnerabilities.

The company, which moved its headquarters from Hong Kong to Singapore last year, is currently awaiting license approval from the Monetary Authority of Singapore, or MAS.

The MAS banned public advertising of crypto products earlier this year. Crypto.com was one of the companies affected after the installation of a large billboard on a high-profile shopping street. Advertising practices of the crypto industry have come under scrutiny as opponents worry that retail investors could buy into the asset class with a limited understanding of risk.

“Singapore is a strong supporter of blockchain technology and the cryptocurrency industry in general,” said the CEO. “It’s a great place for industry players, and there’s quite a large number of players.”

Crypto.com, one of the largest exchanges with more than 10 million users, made headlines after it bought the sponsorship rights to an iconic sports and entertainment arena in Los Angeles, once called the Staples Center. It is also running a major marketing campaign with actor Matt Damon along with several professional sports teams.

Arun Agarwal
I am Arun Agarwal, a passionate blogger and gamer. I love to share my thoughts on games and technology through blog posts. I’m also an avid reader of books about history, philosophy, science-fiction, and other genres as well as an anime fan. I like reading books that give me new perspectives or help me think differently about the world around us.