Tech
Alert! Crypto.com Suspends Withdrawals After ‘Unauthorized Activity’
Crypto.com said it has stopped all deposits and withdrawals while it investigates “unauthorized activity” on some accounts. The crypto wallet and trading platform provider said in a Twitter post that the measure was temporary to allow it to improve security and that it would resume operations once the update was complete. The company added that all funds are safe.
Several users had reported on social media that their cryptocurrencies, sometimes equivalent to tens of thousands of dollars, had disappeared from their Crypto.com accounts in recent days. A spokesperson for Crypto.com did not respond to a request for comment.
Technical issues on cryptocurrency trading platforms have become commonplace as the hype surrounding digital assets grows. Providers such as Coinbase, Binance and Kraken have all suffered widespread outages at times of peak demand over the past year, causing problems for investors who have been prevented from making withdrawals or liquidating their positions during volatile trading periods.
Crypto.com has more than 10 million customers and is one of the largest platforms in the United States, having recently won the naming rights to take over from Staples as the title sponsor of the Los Angeles sports center. The $700 million deal accompanied a major marketing push starring Crypto.com investor and Hollywood actor Matt Damon.
Crypto influencer and podcast host Ben Baller said in a tweet Monday that approximately 4.28 Ether, which is equivalent to about $14,000, had been “stolen out of thin air” from his account, a move that would have required a potential hacker to overcome two-factor authentication security measures.
Baller later said that as of mid-morning in London, a wallet belonging to Crypto.com had lost around 5,000 Ether, which is equivalent to around $16.3 million.
Dogecoin co-founder Billy Markus also said he noticed “strange activity” on an Ethereum wallet on Crypto.com on Monday, noting an unusual pattern of transactions going to recipients’ wallets.