Crypto.com received a major blow as the digital bank was hacked leaving customers with significant losses. The hacking incident is a major strain on its public image. Given the fact that it has worked quite a lot to build up the image of credibility, the mark left by the hacking episode will take some time to fade away. Crypto.com holds the position of the most prominent digital bank in the Asia-Pacific region. Ben Parker was indeed right when he said, “With great power comes great responsibility.” And how Crypto.com will juggle both these precepts remains to be seen. Although the company insisted that there were zero losses, the Twitter posts of some of the customers tell a rather different story.
The What and How
Cleanup work after a catastrophe is a Herculean task especially when it involves preserving the public image from possible creasing and crumpling under the weight of the event. Following the news of the hacking, Crypto.com was fast in ensuring that there has been no losses nor were the accounts of any customers compromised. However some of the customers took to Twitter to report losses, and it seems like the hacking has left a rather deep mark. Many of the users claim that they have recorded losses of ETH.
For instance, crypto enthusiast and entrepreneur Ben Baller reported a loss of 4.25 ETH which is equal to $13,924. The fact that he acquired losses despite enabling the two-factor authentication process points to a major security breach. Following some investigation, Baller also discovered a loss of about 5000 ETH from another ETH wallet.
Despite these claims and reports of losses from users, the company insisted that none of the accounts were compromised. It also requested the customers to sign back to their app and reset the two-factor authentication. However, some of the users faced difficulty while setting up the two-factor authentication. A user, Matt Nutt faced an error while trying to set up the two-factor authentication. He tweeted, “Trying to set up 2FA brings up an error saying, “Sorry, there was an unexpected issue. Please try again later or contact support via live chat or firstname.lastname@example.org”….. What’s going on?
Crypto.com had made some significant moves in connection with marketing last year. The hack might cast a shadow over these efforts as the security breach is not beneficial for the company’s public image and PR. In the year 2021, Crypto.com had spent a whopping $700 million to attain the naming rights to the former Staples Center.