Crypto.com breach may be worth up to $33M, suggests onchain analyst

Onchain analyst claims Crypto.com’s security breach may have cost more than $15 million.

Pseudonymous ErgoBTC is an on-chain analyst at OXT Research that claims Crypto.com security breaches that resulted in the loss 4.6KETH ($15,000,000) may have a value of up to $33 Million.

To the already reported 4.6k Ethereum from yesterday’s @cryptocom Hack, an additional 444 BTC was added. Despite large outflows from the custodial account into ETH’s Tornado cash and a well-known BTC tumbler (as described below), there is still no acknowledgment of loss. pic.twitter.com/GalJKM6bi9
— Ergo (@ErgoBTC), January 18, 2022

Reports said that Crypto.com had stopped withdrawals Monday “after a small amount of users” experienced suspicious transactions. Although the cryptocurrency exchange confirmed that users’ money was safe, it has now resumed withdrawals. However, reports later revealed that it had lost 4.6K Ethereum ($15 million) and was being re-laundered with Tornado Cash.

On Tuesday, ErgoBTC posted a tweet suggesting that 444 BTC ($18.5 Million) was stolen from Crypto.com’s payout wallet. ErgoBTC stated that OXT Research had discovered a suspicious transaction of 52.55 BTC (or $2.18 million) from Crypto.com’s custodial account.

According to ErgoBTC, the transaction resulted in “several hundred withdrawals”, which were combined into four outputs of 67.75 BTC ($2.81million each). All four batches totaled 271 BTC (11.25 million), according to ErgoBTC.

According to ErgoBTC’s tweet, the Bitcoin tumbler that the alleged perpetrators used to wash the 271 BTC was a well-known tool of the North Korean cybercrime syndicate Lazarus.

ErgoBTC claims that the Crypto.com security breach was also caused by criminals who controlled 172.9 BTC ($7.25 Million). Blockchair data shows that the funds were received at the same time by the address as other transactions related to the Crypto.com hack. The purported hacker, however, has not yet transferred funds via a bitcoin tumble service, as per the publication of this article.

Similar: ImmuneFi reports $10B in DeFi hacks losses and gains across 2021

Crypto.com has not yet acknowledged any losses at the time of publication. Cointelegraph attempted to contact Crypto.com to get more information about its decision to stop withdrawals but was not able to receive a reply at the time of publication. As soon as new information becomes available, this article will be updated.

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