Crypto.com hacked to the tune of $15 million in Ethereum

Singapore - Another day, another crypto scandal – this time hackers struck cryptocurrency trading platform Crypto.com and made off with bulging virtual pockets full of Ethereum.

Hackers stole over 4,600 Ethereum, valued at around $15 million.
Hackers stole over 4,600 Ethereum, valued at around $15 million.  © Collage: IMAGO / Michael Weber, blickwinkel

What started as "suspicious activity" on cryptocurrency trading platform Crypto.com led to a lockdown on user withdrawals and has now been confirmed as a devastating hack.

Even though Crypto.com hasn't officially admitted that any cryptocurrency was stolen, it seems that the hack siphoned 4,600 units of the cryptocurrency Ethereum (ETH) from multiple accounts, valued by CoinDesk at roughly $15 million.

Normally, it would be easy to figure out where the coins ended up, because all cryptocurrency transactions are visible in public ledgers, but the stolen coins have already been laundered using a tech service meant to make transactions more private.

Is steel a dying industry in Pennsylvania amid Nippon takeover bid?
Finance Is steel a dying industry in Pennsylvania amid Nippon takeover bid?

First noticed by security analyst company Peck Shield, the hackers covered their tracks by tricking the ETH payment ledger with the privacy service Tornado Cash.

Fortunately for the users whose ETH was stolen, Crypto.com already reimbursed them and claims to have upped their security, according to a tweet from CEO Kris Marszalek, who also promised a full breakdown of the hacking event once the platform wraps up its investigation.

Crypto trading is inherently risky, but the fact that hackers can actually engage in money laundering to hide their tracks makes the scene seem even more volatile than before.

Cover photo: Collage: IMAGO / Michael Weber, blickwinkel

More on Finance: