Crypto.com has issued an official remark on the situation that saw it halt its users' ability to withdraw money after hinting at final numbers earlier in the week. Unauthorized bitcoin withdrawals on 483 individuals' accounts were reported by the firm on Monday.
The company stated, "In the majority of cases we prevented the unauthorized withdrawal, and in all other cases customers were fully reimbursed. Unauthorised withdrawals totalled 4,836.26 ETH, 443.93 BTC, and approximately US$66,200 in other cryptocurrencies."
The value of ether was just shy of $14 million at the time of writing, whereas the fiat worth of bitcoin was just over $17 million. Overall, depending on the unpredictable cryptocurrency pricing on any given day, the entire sum may be approximately $31 million.
Users' two-factor authentication was not used, according to Crypto.com, which noticed transactions early Monday morning UTC.
"Crypto.com revoked all customer 2FA tokens and added additional security hardening measures, which required all customers to re-login and set up their 2FA token to ensure only authorized activity would occur. Downtime of the withdrawal infrastructure was approximately 14 hours," it stated.
"In an abundance of caution, we revamped and migrated to a completely new 2FA infrastructure."
The company also announced a new policy requiring customers to wait 24 hours before withdrawing funds to a whitelisted address, as well as a scheme that will reimburse consumers up to $250,000 if unauthorised withdrawals are made and certain requirements are fulfilled.
Users must employ multi-factor authentication on all transactions when possible, set an anti-phishing code at least 21 days before the unauthorised withdrawal, make a police report and send a copy to the corporation, and undertake a "questionnaire to facilitate a forensic investigation," among other terms.
"Terms and conditions may vary by market according to local regulations. Crypto.com will make the final determination of eligibility requirements and approval of claims," the company said.
