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Crypto exchange Crypto.com has strongly denied allegations that it concealed a 2023 data leak involving user information from authorities. The claims, amplified by blockchain investigator ZachXBT, suggested the exchange "covered up a breach." However, Crypto.com maintains that all necessary regulatory filings were made.
Key Takeaways
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Crypto.com denies keeping a 2023 data leak secret from authorities.
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The exchange states a phishing campaign targeted an employee, exposing limited Personally Identifiable Information (PII).
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Crypto.com asserts that no customer funds were compromised and the incident was contained quickly.
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The company claims it filed a "Notice of Data Security incident" with US regulators and other relevant bodies.
The Allegations
Reports surfaced following a Bloomberg article detailing claims by Noah Urban, a member of the hacking group Scattered Spider. Urban alleged that the group gained access to a Crypto.com employee's account before early 2023 through phishing, which subsequently exposed some users' personal information. Blockchain investigator ZachXBT further fueled the controversy on X (formerly Twitter), accusing Crypto.com of covering up the breach and suggesting the company had experienced multiple security incidents.
These accusations led to criticism from some in the crypto community, who argued for greater transparency from Crypto.com, especially in light of recent data leak concerns following the exploitation of customer information on major exchange Coinbase.
Crypto.com's Response
A spokesperson for Crypto.com clarified the situation to Cointelegraph, stating that the company detected a phishing campaign targeting one of its employees in 2023. This incident resulted in the exposure of "limited PII data affecting a very small number of individuals." The spokesperson emphasized that the incident was contained within hours of detection and that customer funds remained secure and at no risk.
Furthermore, the spokesperson confirmed that Crypto.com filed a "Notice of Data Security incident" with the US-based Nationwide Multistate Licensing System and submitted additional reports to relevant jurisdictional regulators. The company did not immediately confirm whether affected individuals were notified or if the regulatory filings were made public.
CEO Addresses "Misinformation"
Crypto.com CEO Kris Marszalek echoed the company's stance on X, labeling the suggestions of non-disclosure as "completely unfounded." He reiterated that the company reported the breach to US authorities and other relevant regulators. Marszalek's comments aimed to counter what he described as "misinformation spreading from uninformed sources."
In related news, Crypto.com recently finalized an agreement with Trump Media & Technology Group, the parent company of Truth Social, to establish a Cronos (CRO) treasury, signaling a growing connection between the crypto industry and the Trump administration.
Sources
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Crypto.com Responds To Report On Undisclosed User Data Leak, Cointelegraph.
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Crypto.com says report of undisclosed user data leak ‘unfounded’ — TradingView News, TradingView.
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