Crypto.com Suspends Withdrawals as Users Claim Their Funds are Stolen

They say there’s never a boring day in the crypto space, and that statement rings true today more than any other.

The popular cryptocurrency exchange, Crypto.com, announced that it’s pausing withdrawals on its platform for a while after noticing suspicious activity.

Crypto.com Pauses Withdrawals

The exchange announced the move on its Twitter page, stating that it’s halting withdrawals due to a small number of users reporting suspicious activities on their accounts. The exchange claimed that all funds were safe while investigating the events.

We have a small number of users reporting suspicious activity on their accounts.

We will be pausing withdrawals shortly, as our team is investigating. All funds are safe.

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

Dogecoin creator Billy Markus first noticed what the suspicious activities were, in fact, a transaction pattern with one wallet receiving all multiple transactions. He further asked whether funds were safe and if this was an internal job.

Users Claim Their Funds are Being Stolen

Though Crypto.com claims all funds are safe, many users have come to dispute the claim.

A famous jeweler and crypto enthusiast, Ben Baller, claimed that his account was breached with 4.28 ETH (about $15,000) stolen despite having a 2-factor authentication. Other users have shared the same experience, with many pointing out they have lost part of their assets.

I messaged yah guys hours ago about my account having 4.28ETH stolen out of nowhere and I’m also wondering how they got passed the 2FA?

— BEN BALLER™ (@BENBALLER) January 17, 2022

Tokens reportedly stolen include Shiba Inu, Dogecoin, Ether, and Bitcoin. The users also pointed out that despite claiming that withdrawal had been halted, the assets were still stolen with transactions processed.

A user who claimed to have lost his BTC during the event has been told to contact Crypto.com Customer support directly. But the exchange itself is yet to acknowledge that some users lost their assets during the incident.

However, the exchange has provided an update on the situation of things. While maintaining that all funds are safe, it has also initiated new procedures that it claims will enhance security on all accounts. Users now have to sign back into the Crypto.com App and Exchange accounts and reset their 2FA.

The exchange plans to release an update progressively in the next few hours. Once the update is complete, it’ll re-enable withdrawals. In its announcement, it emphasized the priority of security above all.