Crypto.com Introduces WAPP Program After Platform Hack

January 21, 2022 5:54 pm

Crypto.com, a popular cryptocurrency exchange, has found itself in the spotlight in the past couple of weeks due to the recent hack on the platform.

The company announced that they have confirmed around 400 users that were affected by the hack where unauthorized withdrawals were initiated.

These withdrawals totaled 4,836.26 ETH, 443.93 BTC and around $66,200 in other types of cryptocurrencies on the exchange making this hack one of the biggest losses in the company’s history.

In order to ensure that there are no more future security incidents like this again, the platform is being upgraded to a new security infrastructure and is replacing the current 2-factor authentication with multi-factor authentication.

More importantly, it is introducing something called the Worldwide Account Protection Program (WAPP) which will provide comprehensive security measures for all funds held within the exchange for both the app and website.

Blockchain.news reports:

“The safety of our customers’ funds is our highest priority, and we are continually enhancing our Defence-in-Depth security and protection measures,” said Kris Marszalek, Co-founder and CEO of Crypto.com.

“While we are reminded of the existence of bad actors intent on committing fraud, this new Worldwide Account Protection Program, along with our new MFA infrastructure, gives our users unprecedented protection of their funds, and hopefully, peace of mind.”

To be eligible for the WAPP benefits, users must activate the Multi-Factor Authentication (MFA) on all transaction types where MFA is currently available, set up an anti-phishing code at least 21 days prior to the reported unauthorized transaction, not be using jailbroken devices, file a police report and provide a copy of it to Crypto.com; and to complete a questionnaire to support a forensic investigation.

“Crypto.com is a leader in security and compliance, including our recent SOC 2 announcement,” said Jason Lau, Chief Information Security Officer of Crypto.com, adding “While our goal is to prevent any security breaches, our industry-leading insurance policy and Worldwide Account Protection Programs offer our customers additional protections in rare instances when there is an incident.”

The company reported that they stopped the withdrawals as soon as possible when they detected it and the exchange was back online within 13 to 14 hours.

Any funds that were lost as a result of the hack was reimbursed by the company so no customer funds were lost.

The WAPP, as described by the company’s website, will also restore any funds lost of up to $$250,000 per account if any future incidents which will provide a safety net to provide customers the assurance that their funds are protected no matter what.

To fully quality for the program, Crypto.com lays out a set of requirements.

Crypto.com explains:

To qualify for the APP program, users must:

    1. Enable Multi-Factor Authentication (MFA) on all transaction types where MFA is currently available,

    2. Set up an anti-phishing code at least 21 days prior to the reported unauthorized transaction,

    3. Not be using jailbroken devices,

    4. File a police report and provide a copy of it to Crypto.com; and

    5. Complete a questionnaire to support a forensic investigation.

Crypto.com is the main cryptocurrency exchange that managed to be hacked this year and news of the hack further illustrated the need for tighter security measures for all crypto exchanges.

Within the past few years, multiple other exchanges have suffered security incidents as well which includes exchanges like BitMart and KuCoin.

As the industry continues to grow, there will be a need for regulation to ensure that all crypto exchanges satisfy a set of security standards to help encourage further mainstream adoption.

 

 

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.