Crypto.com said it stopped all deposits and withdrawals while it investigates “unauthorized activity” on some accounts.
The crypto wallet provider and trading platform said in a Twitter post that the measure was temporary to allow it improve security and it would resume activity once the update was complete. The company added that all funds are safe.
Several users had reported on social media that their cryptocurrencies, at times equating to tens of thousands of dollars, had disappeared from their Crypto.com accounts in recent days. A spokesperson from Crypto.com didn’t respond to a request for comment.
Technical issues on crypto 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 in the last year, causing trouble for investors who were prevented from making withdrawals or liquidating their positions amid volatile trading periods.
Crypto.com has more than 10 million customers and is one of the most prominent platforms in the U.S., having recently secured 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 on Monday that around 4.28 Ether, which equates to roughly $14,000, had been “stolen out of nowhere” from his account, a move which would have required a potential hacker to surpass two-factor authentication security measures.
Baller later alleged that as of mid-morning in London, a wallet belonging to Crypto.com had lost approximately 5,000 Ether, which equates to roughly $16.3 million.
Dogecoin co-founder Billy Markus also said he had spotted “odd activity” on an Ethereum wallet on Crypto.com on Monday, noting an unusual pattern of transactions going to recipient wallets.
Source: Bloomberg
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