After receiving reports of suspicious activity from “a small number” of users, Crypto.com stopped transactions for 2FA accounts. The company also added new verification methods and increased account security.
Don’t let the keys to your cryptocurrency go missing. Despite technological advancements, the almost sacred mantra repeated ad nauseam by cryptocurrency enthusiasts still holds true. The crypto-exchange Cryptocom announced today that its customers will have to wait before withdrawing any cryptocurrency from their wallets because of customer complaints about money missing from accounts.
During the morning of January 17, 2022, CryptoCom’s official Twitter account acknowledged that a “small number of users” reported “suspicious activity” on their accounts. The pause on all withdrawals was a precautionary measure while staff gathered information.
CryptoCom’s Security Plan Has Been Activated
CryptoCom doesn’t officially disclose what the suspicious activity was. Instead, it was users who began reporting a series of alleged unauthorized withdrawals. In all, the sums lost were several thousand dollars.
To be sure, there were reports that even 2FA-protected accounts had been compromised, and funds were drained even with this additional layer of security.
2FA or Two Factor Authentication is a technology that requires users to verify their identity through a second factor other than the username and password. The most common case is where you receive a token that is valid for a short time, typically around 15 minutes, which must be received through a device registered to the user’s account.
Besides pausing withdrawals, CryptoCom has reset the 2FA of all its users, forcing them to set up their account as if it were a new one. The exchange appeals for calm, assuring that its users’ funds are completely safe.
Kris Marszalek, CEO of Crypto.com, announced that the team was in the final phase of investigating the incident and that within less than half a day, the exchange had restored all its services, guaranteeing the security of the funds.
CRO Suffered, But Not Because of the 2FA Incident
CRO, Crypto.com’s native token, did not suffer much despite the turmoil. Although it experienced a 4.27% drop from $0.4642 to $0.4442 during the day, the decline seems to be more related to Bitcoin than a possible distrust of the platform.
On Monday, Bitcoin’s price suffered a slight drop that made ripples across the rest of the cryptocurrencies. Bitcoin’s fall is due to a mix of factors ranging from the continuation of a naturally bearish trend to a general episode of market anxiety due to the current macroeconomic conditions.
Although the fundamentals of Crypto.com’s token CRO are solid, the company is investing heavily in brand awareness and announced a partnership with the Australian Football League and the AFLW this week.
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