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    Crypto.com Confirms Hack And Compensates Losses

    Crypto.com hack

    On January 17, the Crypto.com crypto exchange was hacked.  In the first hours after the incident, the platform management gave scant comments on what happened, only reporting that suspicious activity was recorded in the accounts of individual clients. At the same time, it was argued that client funds were not affected. These comments were interpreted as indicating the intention of the exchange to compensate users for losses without shifting the burden on their shoulders.

    Subsequently, the head of the platform nevertheless admitted that approximately 400 user accounts were hacked. He clarified that the relevant regulators did not send him notifications in connection with the hack, and promised to share, if necessary, all the information available to him about the incident.

    On January 20, the exchange released an official report on the incident. It turned out that 483 users became victims of malefactors. The total damage from the attack amounted to ~$33.93 million: funds were withdrawn in BTC, ETH and other unnamed cryptocurrencies. What is most remarkable, the exchange really reimbursed the losses to all affected customers.

    It is noteworthy that all the stolen Bitcoins were sent to the address of the Bitcoin mixer, which was used by professional hacker groups in the past.

    Enhanced security measures were taken in response to the incident, including the introduction of a customer account protection program, a new two-factor authentication model, and a security audit. The so-called qualified clients of the exchange can ensure their assets for up to $250,000. Last fall, the Crypto.com platform expanded the user funds insurance program to $750 million.

    The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research. This text is not a guide to action. The author's opinion may not coincide with the opinion of CoinJoy.