Crypto.com, one of the world’s largest cryptocurrency exchanges, has reportedly been hacked, with at least $15 million worth of ether stolen. The hack, the latest in a series of security forks affecting cryptocurrency exchanges, has further damaged confidence in the nascent cryptocurrency space.
These issues came to light when users started reporting their funds lost, even those with two-factor authorization enabled. Crypto.com tweet It is suspending withdrawals after receiving complaints from users.
These issues led blockchain security firm PeckShield to start researching blockchain data. It found that at least 4,600 Eth was being laundered through Tornado Cash, an Ethereum privacy protocol that breaks the link between source and destination addresses.
@cryptocom lost ~$15M with at least 4.6K ETH, half of which is currently going through @TornadoCash https://t.co/PUl6IrB3cp https://t.co/6SVKvk8PLf pic.twitter.com/XN9nmT857j cleaningJanuary 18, 2022
The hack is notable because Crypto.com is not an obscure exchange, but one of the largest with a 24-hour trading volume of over $3 billion, about the same as Coinbase. Interestingly, Crypto.com The hack has not been officially confirmed. To its credit, the company has promised users that their funds are safe. The company is conducting an internal investigation and is expected to issue a report or a detailed statement in the coming days. It also took steps to strengthen its security infrastructure.
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But has the horse run wild? Once a user’s trust is lost, it is difficult to regain. There is an old saying among crypto enthusiasts: “Not your keys? Not your coins”. This means that your cryptocurrency is at the mercy of the exchange where you hold your funds. Unless you are buying, selling or trading, it is best to keep your private keys safe offline and away from potential hackers. Many of them may have state support.
Crypto.com has boosted its profile through a series of expensive sponsorship deals that include Formula 1, European football teams and even stadium naming rights. It’s hardly the kind of PR black eye that a company needs.
Hacking reports are not what the market needs at a time when the crypto market is trying to get out of the Wild West and integrate with the wider financial system. Sadly, too many people think of cryptocurrencies as a den of crooks and criminals. As an avid cryto lover, I wonder if they are not wrong.