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Crypto.com accounts had unauthorized withdrawals

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Re: Crypto.com accounts had unauthorized withdrawals

#151

Post by somebodythere »

NelsonMinar wrote: post #119
VHRanger wrote: post #7

Earlier quoted context omitted.

Presumably they mostly stole ETH because tornado cash is the best mixer around to launder stolen funds

I'd love to read more about these money laundering operations like Tornado Cash. Are they just straight up 100% fraud companies? Do they have any pretense of a legitimate use case or does everyone just understand they're used for criminal activity? Are they regulated at all? I assume you have to trust your magic beans to them at some point; do the money launderers sometimes just steal them? What do they charge for th…

Tornado Cash is a smart contract system that allows you to send fixed denominations of Ethereum, and receive a cryptographic "note" that allows someone who knows the note to withdraw the same amount of Ethereum from the smart contract.

Since zero-knowledge cryptography is used to ensure the generated note cannot be linked to the depositing transaction, it can be used to send money to yourself or another person without revealing the identity of the sender. There are criminal and non-criminal reasons to do this.

Because it is a smart contract system, you do not have to trust a person or organization with the money. You do have to trust the smart contracts defining the system are correct. The smart contracts are publicly available to read and have been reviewed by many people, including software audit organizations.

Re: Crypto.com accounts had unauthorized withdrawals

#152

Post by [deleted] »

EMM_386 wrote: post #96

> On Monday, 17 January 2022 at approximately 12:46 AM UTC Crypto.com’s risk monitoring systems detected unauthorized activity on a small number of user accounts where transactions were being approved without the 2FA authentication control being inputted by the user. This triggered an immediate response from multiple teams to assess the impact. I sometimes find it hard to believe these statements, but I guess I can o…

[deleted]

Re: Crypto.com accounts had unauthorized withdrawals

#153

Post by gowld »

zknill wrote: post #114

The Worldwide Account Protection Program seems to be a way for Crypto.com to limit their exposure, while marketing it as "protection" for the customers. Around $34million stolen, 483 users affected. If the funds were spread evenly, then each user would have lost about $71k. But the funds won't be evenly spread (average). It's likely some users will have lost much more, and some much less. From the announcement, it lo…

> This looks more like a mechanism to limit Crypto.com's exposure to future events than it does a policy to protect users.

That's fine. It lays out the risk exposure in concrete terms and defining their market offering. If you use a jailbroken device, or have more than $250K in funds, or are holding crypto for illegal purposes, don't put it in Crypto.com. Same as FDIC insured savings accounts that are limited to $250K.

Re: Crypto.com accounts had unauthorized withdrawals

#154

Post by gowld »

thow-58d4e8b wrote: post #68
myth_drannon wrote: post #19

Earlier quoted context omitted.

I wouldn't call it a startup, it paid 700mil$ to rename an arena!

Venture capital used to be about placing small, diverse bets on a lot promising startups - everybody in the process was trying to make the world a better place Since about 2018, VC game changed - now it's about brazenly placing massive bets on a small set of startups of increasingly questionable utility, using the funds and clout to ram their way through into monopoly positions. Not a speck of morality involved anymo…

CryptoPets.com incoming!

Re: Crypto.com accounts had unauthorized withdrawals

#156

Post by wpietri »

zknill wrote: post #114

The Worldwide Account Protection Program seems to be a way for Crypto.com to limit their exposure, while marketing it as "protection" for the customers. Around $34million stolen, 483 users affected. If the funds were spread evenly, then each user would have lost about $71k. But the funds won't be evenly spread (average). It's likely some users will have lost much more, and some much less. From the announcement, it lo…

> No customers experienced a loss of funds.

I mean, there's still plenty of money in other people's accounts they can use to cover the losses.

Does anybody know whether the regulatory regime they operate under is sound? If a US bank lost this kind of customer money in a theft, I'd have some confidence that the the FDIC and the Federal Reserve would make sure they actually had all the money they were claiming they had. But personally I'd hate to bank purely on the internal controls of a Singaporean subsidiary of a Maltese company.

Re: Crypto.com accounts had unauthorized withdrawals

#157

Post by gowld »

Tarsul wrote: post #75
mikeyouse wrote: post #36

Earlier quoted context omitted.

Technically, they agreed to pay $700M over 20 years for arena naming rights -- no idea what the deal actually looks like but if you flat-line it, they're "only" paying $35M/year. Which is still a ton of money but much more reasonable in terms of cash out the door for a startup.

I hope this doesn't mean we have to endure 20 years of this name on the nba court. With all this gambling (sports betting) sponsoring of the NBA and now these crypto sponsors, it really does look like the NBA has sold out (also new trikot sponsor deals). It's a shame how much they feast on hooking impressionable men on gambling. Actually, thinking about it, there should be more ads for f2p/mobile games, would fit per…

Sports business has always loved sports betting. What you are seeing now is relaxed regulation and new tech that routes around existing regulation.

Re: Crypto.com accounts had unauthorized withdrawals

#158

Post by danaris »

mritchie712 wrote: post #60
gitfan86 wrote: post #46

I am a cyber security consultant for startups. The first thing that I communicate is that just by not being in crypto you have drastically lowered your risk profile. Attackers care a lot about what they can get to if they are able to breach your security.

How many startups do you talk to that are "on the fence" with somehow using crypto in their product? Seems pretty core to what the company would be doing.

I dunno, I've seen a lot of mentions of different companies trying to stuff crypto/blockchain in to seem trendy and marketable when it's clear that there's absolutely nothing crypto/blockchain brings to that use case.

(In fact, I have yet to see a single genuine use case for cryptocurrencies or blockchain that aren't served at least as well by more proven technologies, aside from "separating money from fools" and "making libertarians/anarchocapitalists squee".)

Re: Crypto.com accounts had unauthorized withdrawals

#160

Post by CPLX »

thow-58d4e8b wrote: post #68
myth_drannon wrote: post #19

Earlier quoted context omitted.

I wouldn't call it a startup, it paid 700mil$ to rename an arena!

Venture capital used to be about placing small, diverse bets on a lot promising startups - everybody in the process was trying to make the world a better place Since about 2018, VC game changed - now it's about brazenly placing massive bets on a small set of startups of increasingly questionable utility, using the funds and clout to ram their way through into monopoly positions. Not a speck of morality involved anymo…

> everybody in the process was trying to make the world a better place

have you actually met any VCs?

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