Unauthorized Transactions Lead To Withdrawal Suspension

It’s been said that there’s never a dull day in the cryptocurrency market, and that assertion is more accurate now than ever before. Crypto.com, a renowned cryptocurrency exchange, has stated that it is temporarily suspending withdrawals on its site due to suspicious activities.

While it examines “unauthorized conduct” on select accounts, Crypto.com has halted all deposits and withdrawals. The crypto wallet and trade platform claimed in a post on Twitter that the action was only temporary and that it will restore normal operations once the security upgrade was completed. All monies are safe, according to the business. Several customers complained about social media that their cryptocurrencies, worth tens of thousands of dollars in some cases, had vanished from their Crypto.com accounts in recent days. Crypto.com’s representative did not reply to a seeking comment.

The Buzz Around

As the buzz surrounding digital assets rises, technical glitches on crypto trading platforms have grown more regular. In the previous year, providers such as Coinbase, Binance, and Kraken have had extensive disruptions during high-demand periods, generating problems for investors who were unable to make withdrawals or liquidate their positions during volatile trading periods. Crypto.com has over 10 million subscribers and is one of the most well-known platforms in the United States, having recently acquired naming rights to the Los Angeles Sports Center, replacing Staples as the headline sponsor. The $700 million purchase was announced alongside a massive marketing campaign including Crypto.com investor & Hollywood actor Matt Damon.

In a tweet on Monday, crypto influencer and podcast host Ben Baller reported that about 4.28 Ether, or about $14,000, had been “taken out of nowhere” from his account, a move that would have required a possible hacker to bypass two-factor authentication security procedures. Baller later claimed that a wallet linked to Crypto.com had lost around 5,000 Ether, which is roughly $16.3, as of mid-morning in London. On Monday, Billy Markus, a co-founder of Dogecoin, claimed he noticed “strange behavior” on an Ethereum wallet on Crypto.com, noting an odd pattern of transactions moving to recipient wallets. The action was revealed on Twitter, with the exchange claiming that withdrawals are being halted owing to a limited number of customers flagging suspicious activity on their accounts.

While the exchange investigated the incidents, it declared that all monies were secure. Although Crypto.com says that all money is secure, numerous users have expressed their dissatisfaction with this guarantee. Despite having two-factor authentication, Ben Baller, a well-known jeweler and crypto enthusiast, alleged that his account was compromised, with 4.28 ETH (about $15,000) taken. Other customers have reported similar incidents, with others claiming to already have lost personal items. Among the reportedly stolen tokens are Shiba Inu, Dogecoin, Ether, & Bitcoin. Users also pointed out that, despite assertions that transactions had been halted, assets were still being stolen and operations were still being carried out.

A user who reported to have stolen his BTC during the event was advised to contact Crypto.com directly. However, the exchange has yet to accept that any users’ funds were lost as a result of the event. The exchange, on the other hand, has offered an overview of the situation. While it maintains that all monies are secure, it has implemented additional processes that it believes will improve account security. Users must now sign back into their Crypto.com App & Exchange identities and reset their two-factor authentication. In the next hours, the exchange aims to deliver a series of updates. Withdrawals will be enabled after the upgrade is complete.

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