Tech
Crypto.com hacked, Ethereum and other cryptocurrencies deleted from accounts, regulators missing
According to CEO Kris Marszalek, Crypto.com has not received any “outreach” from regulators following a cybersecurity breach earlier this week of approximately 400 customer accounts. During an online interview at Bloomberg’s Year Ahead virtual conference, Marszalek said from Singapore that he was ready to share information about the hack if any relevant requests come from regulators.
The company became the latest cryptocurrency exchange to be hit by online thieves on Tuesday after users reported that Ethereum and other cryptocurrencies had been deleted from their accounts. All customers have been refunded, Marszalek said.
“Obviously it’s a great lesson and we’re continually strengthening our infrastructure,” Marszalek said during the interview. “Given the scale of the business, these numbers are not particularly relevant and client funds were not at risk.”
The exact value of the affected cryptocurrencies is still unknown, although estimates are 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 dawn of cryptocurrencies, with rogue programmers probing the software code of protocols 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.
Earlier this year, the MAS banned public advertising of crypto products. Crypto.com was among the companies affected after placing a large billboard on a major shopping street. The cryptocurrency industry’s advertising practices have come under scrutiny as naysayers worry that retail investors may be buying into the asset class with a limited understanding of the risks.
“Singapore is very supportive of blockchain technology and the cryptocurrency industry in general,” the CEO said. “It’s a great place for industry workers and there’s quite a large number of them.”
One of the largest exchanges with over 10 million users, Crypto.com made headlines after purchasing the sponsorship rights to an iconic sports and entertainment arena in Los Angeles, once called Staples Center. It is also running a major marketing campaign with actor Matt Damon, along with various professional sports teams.