Following the hacking of nearly 400 customer accounts, Singapore-based Crypto.com said that it has not received any “outreach” from regulators.
Confirming the development, Chief executive officer Kris Marszalek, during an online interview at Bloomberg’s Year Ahead virtual conference, said from Singapore that all customers have been reimbursed and he is prepared to share information on the hack if any relevant inquiries come from regulators.
Crypto.com became the latest crypto exchange to be hit on January 18 after users reported that Ethereum and other cryptocurrencies were wiped from their accounts. “Obviously, it’s a great lesson and we are continuously strengthening our infrastructure,” said Marszalek. Given the scale of the business, these numbers are not particularly material and customer funds were not at risk, he added.
An exact value of the cryptocurrencies affected is still unknown, although estimates are in the millions. Marszalek said Crypto.com plans to release more information in a blog post in the coming days. The firm, which moved its headquarters from Hong Kong to Singapore last year, is currently awaiting licence approval from the Monetary Authority of Singapore (MAS), according to a Straits Times report.
MAS announced a ban on the public advertising of crypto products earlier this week. Advertising practices of the crypto industry have come under scrutiny as opponents worry that retail investors could buy into the asset class with limited understanding of risks. “Singapore is very supportive of blockchain technology and the cryptocurrency industry in general. It’s a great place for the industry players, and there’s quite a large number of players there,” said Marszalek
One of largest exchanges with more than 10 million users, Crypto.com made headlines after it bought the sponsorship rights to an iconic sports and entertainments arena in Los Angeles, once-branded the Staples Centre. It is also running a major marketing campaign with actor Matt Damon, along with various professional sports teams.