Hacked Crypto.com Customer Accounts Previously Breached Had $34 Million In Cryptocurrencies

Digital asset platform Crypto.com said its client accounts hacked earlier this week by unauthorized withdrawals contained about $34 million worth of cryptocurrencies and cash.

Digital asset platform Crypto.com said client accounts were affected earlier this week by unauthorized withdrawals containing about $34 million worth of cryptocurrencies and cash. In a report released Thursday, the private company said 4,836.26 Ethereum, 443.93 Bitcoin and $66,200 were stolen in Tuesday’s security breach. All customers have been fully reimbursed, the Singapore-based platform reiterated.

The crypto exchange, with more than 10 million users, has suspended activity for 14 hours to investigate the unauthorized withdrawals of 483 customers. The platform was the last of many to be disrupted over the years by hackers exploiting network vulnerabilities.

The company’s insurance policy and account protection program cover users “on rare occasions” of security breaches, Chief Security Officer Jason Lau said in the statement.

Russia Proposes Ban on Use and Mining of Cryptocurrencies

MOSCOW (Reuters) The Russian central bank on Thursday proposed banning the use and mining of cryptocurrencies on Russian territory, citing threats to financial stability, citizens’ well-being and the sovereignty of monetary policy.

The move is the latest in a global crackdown on cryptocurrency as governments from Asia to the United States worry that privately operated and highly volatile sirbptial currencies could undermine their control over financial and monetary systems.

Russia has been arguing against cryptocurrencies for years, saying they can be used for money laundering or financing terrorism. It eventually gave them legal status in 2020, but banned their use of nL1N2T110W as a means of payment.

In a report published Thursday, the central bank said speculative demand primarily determined the rapid growth of cryptocurrencies and that they bore features of a financial pyramid, warned of possible market bubbles, threatening financial stability and citizens.

The bank proposed to prevent financial institutions from conducting operations with cryptocurrencies and to develop these mechanisms to block transactions aimed at buying or selling cryptocurrencies for fiat currencies.

The proposed ban includes crypto exchanges. Cryptocurrency exchange Binance told Reuters it was committed to working with regulators and hoped the publication of the report would spark a dialogue with the central bank about protecting the interests of Russian crypto users.

There are no restrictions on cryptocurrency ownership, said Elizaveta Danilova, head of the central bank’s financial stability department.

Active cryptocurrency users, Russians have an annual transaction volume of about $5 billion, the bank said.

CHINA SHADOWS?

The central bank said it would work with regulators in countries where crypto exchanges are registered to gather information about the activities of Russian customers. It pointed to steps taken in other countries such as China to curb cryptocurrency activity.

In September, China intensified its crackdown on nL1N2QQ0MG against cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

“For now, there are no plans to ban cryptocurrencies comparable to China’s experience,” Danilova said. “The approach we have proposed is sufficient.”

Joseph Edwards, head of financial strategy at crypto firm Solrise Group, downplayed the significance of the report, saying it would not worry anyone outside of Russia.

“Moscow, like Beijing, is always rattling its saber about ‘crypto bans,’ but Russia has never been a pillar of any facet of the industry in the same way that China has sometimes been,” he said.

CRYPTO MINING

Russia is the world’s third largest player in bitcoin mining, behind the United States and Kazakhstan, although the latter may see an exodus of miners amid fears of tightening regulations following unrest earlier this month.

The Bank of Russia said crypto mining was causing energy consumption problems. Bitcoin and other cryptocurrencies are “mined” by powerful computers that compete with others connected to a global network to solve complex mathematical puzzles. The process guzzles electricity and is often powered by fossil fuels.

“The best solution is to introduce a ban on cryptocurrency mining in Russia,” the bank said.

In August, Russia accounted for 11.2% https://ccaf.io/cbeci/mining_map of the global “hashrate” – crypto jargon for the amount of computing power used by computers connected to the bitcoin network.

Moscow-based BitRiver, which operates data centers in Siberia that host bitcoin miners, said it did not consider a complete crypto ban likely, expecting a balanced position to emerge once various ministries have discussed the proposals.

The central bank, which plans to issue its own sirbptial ruble, said the widespread crypto assets would limit monetary policy sovereignty, with higher interest rates needed to contain inflation.

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.