In 2022, Singapore-based cryptocurrency exchange, Crypto.com became the victim of one of the largest crypto hackings in the world when bad actors gained access to hundreds of customer accounts, draining them of their digital assets. Over $30 million is believed to have been stolen from customer accounts.
The national securities and cryptocurrency law firm, Levin Law, P.A. (“Levin Law”), is investigating claims related to Crypto.com hacking. Customers who sustained losses after a Crypto.com security failure or data breach are strongly encouraged to contact Levin Law at (855) 419-2412 to schedule a free case evaluation. Aggrieved individuals can email Levin Law founder and managing partner Brian Levin at contact@levinlawpa.com.
What Is Crypto.com?
With over 80 million users worldwide, Crypto.com remains one of the largest cryptocurrency exchange platforms. The platform allows you to buy, sell, trade, and store cryptocurrency, including Bitcoin, Ethereum, and Tether. The company, which was founded in 2016, reportedly employs thousands of people.
In 2022, the cryptocurrency industry was rocked after a series of hacks. An estimated $3.9 billion was lost, mainly to hackers. Giants of the cryptocurrency world suffered tremendous losses.
When Did Crypto.com Get Hacked?
According to TechCrunch, the cryptocurrency exchange announced on January 17, 2022, that there had been unauthorized access to customer accounts. Reports indicate that losses were in excess of $34 million. The hack was accomplished through a 2FA compromise. It is believed that 483 customers were affected by the breach.
The company announced that it detected suspicious activity when several transactions on multiple customers were approved without completing the two-factor authentication (2FA) requirements. As a result of the security breach, Crypto.com decided to move away from two-factor authentication to multi-factor authentication.
How Much Cryptocurrency Was Stolen?
Initial projections about the hack had a considerably lower amount that was potentially stolen from customer accounts.
However, the company later acknowledged that the following cryptocurrency amounts were likely stolen:
- Ethereum - approximately $15 million
- Bitcoin - approximately $19 million
- Other - $66,200
Total losses were expected to exceed $34 million. The hack was one of the largest in cryptocurrency in 2022. In response to the hack, the company immediately revoked all current 2FA tokens that were used by customers. After adding additional security features, customers were asked to log in and set up new tokens. Crypto.com also instituted a mandatory 24-hour delay before new withdrawal addresses were able to withdraw funds.
What Should I Do If I Believe My Crypto.com Account Was Hacked?
If your Crypto.com account was compromised, you need to act quickly. You may only have a limited amount of time to file a legal claim. It is important to report the unauthorized access immediately. In some cases, the cryptocurrency exchange may reimburse any funds that were stolen from your account.
After the hack, Crypto.com announced the implementation of the worldwide Account Protection Program. The Account Protection Program or APP is said to offer advanced protection to users, particularly in the event they have suffered losses related to a data breach.
To qualify for the APP program, users must meet a number of qualifications, including having set up a Multi-Factor authentication. Multi-factor authentication, or MFA is considered to be more secure than a 2FA and can help ensure the safekeeping of your cryptocurrency and digital assets.
Do I Need an Attorney?
If you lost money due to unauthorized access to your Crypto.com account, you need to speak with an attorney. An attorney can help you understand your rights and determine whether you have a valid claim for damages. It is important to act fast, as you may only have a limited amount of time to take legal action. Failing to act quickly could result in your case being denied.
The fast rise of cryptocurrency has some worried that there are not enough checks and balances in the industry. An attorney can help ensure that cryptocurrency exchanges are held accountable for their lax security measures. Crypto investors have lost billions of dollars over the course of a year due to hackers. Data breaches are simply far too common and costly.
Contact Levin Law for a Free Case Evaluation
Over $150 Million Recovered, Including Millions for Victims of Cryptocurrency Hacks
If you have suffered losses because of a Crypto.com hacking, you need to speak with an attorney. Contact Levin Law, P.A. to schedule a free case evaluation. Harmed customers are encouraged to call (855) 419-2412 or to email Levin Law's founder and managing attorney directly at contact@levinlawpa.com.
Most cases are handled on a contingency fee basis, meaning clients are not required to pay Levin Law attorney fees unless money is recovered on their behalf. Initial case evaluations are provided without obligation to retain the services of the firm.
