CryptoCom Pauses Withdrawals and Restarts Users’ 2FA Accounts After Reports of Suspicious Activity

Your keys and your coins are not your keys. Despite all technological advancements, this mantra that has been repeated ad nauseam many times by cryptocurrency maximalists remains true. After receiving complaints from users alleging that their funds were missing, Crypto.com has announced today that withdrawals will be suspended.

Crypto.com’s official Twitter account confirmed that “suspicious activity was reported” by a small number of users on January 17th, 2022. Staff gathered information and paused all withdrawals.

A small number of users have reported suspicious activity to their accounts.

As our team investigates, we will soon suspend withdrawals. All funds are secure.

— Crypto.com (@cryptocom), January 17, 2022

After multiple reports of suspicious activity, Crypto.com activates a security plan

Crypto.com doesn’t disclose the source of suspicious activity. Users reported a series of unauthorized withdrawals. The total amount lost was several thousand dollars.

Curiously, reports indicated that funds had been withdrawn from 2FA-protected accounts.

2FA, or Two-factor authentication, is a security technology that requires identity validation through a second credential. This credential can be used instead of a password and user name. Most often, a temporary dynamic key is used. This allows for only one registered device (such a smartphone) to obtain the key. It prevents hackers or other intruders from logging in to the account.

Crypto.com not only stopped withdrawals but also reset the 2FA for all users. This forced them to create an account as if they were creating a new account. Crypto.com appealed to calm and assured that all users’ funds were safe.

Kris Marszalek (CEO of Crypto.com) announced that the team was in its final phase of investigation. In less than half an hour, the exchange had resumed all services and guaranteed the security of funds.

Kris Marszalek was very satisfied with how his team handled the event.

Here are some thoughts I had in the last 24 hours

No customer funds were lost. The downtime for withdrawals infra was approximately 14 hours. Our team has strengthened the infrastructure to deal with the incident.

After the internal investigation has been completed, we will share a complete post mortem.

Crypto.com (@Kris_HK) January 18, 2022

CRO Suffers, but Not Due to the 2FA Incident

Crypto.com’s native currency, CRO, didn’t suffer too much from the turmoil. It saw a drop of 4.27% from $0.4642 down to $0.4442 over the course of the day. However, this decline is more likely to be due to Bitcoin than to a possible distrust in the platform.

CROUSD trading pair. 24-hour candlesticks. Image: Tradingview

Bitcoin experienced a slight decline Monday that rippled across all cryptocurrencies. The fall of Bitcoin is due to a combination of factors, including the continuation of a naturally bearish tendency to market anxiety due the current macroeconomic conditions.

The foundations of Crypto.com’s token CRO are solid. The exchange invests heavily in brand awareness and announced today a partnership with AFLW and the Australian Football Leagye.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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