Crypto.com CEO Breaks Silence on Alleged Hack as CRO Plunges 10% - What Investors Need to Know
Crypto.com faces mounting pressure as CEO Kris Marszalek finally addresses security concerns amid double-digit token decline.
Market Turmoil Hits Exchange
The platform's native token CRO plummeted 10% following unverified reports of a potential security breach. Trading volume spiked as investors scrambled to assess their exposure.
Leadership Breaks Silence
Marszalek's delayed response fueled speculation, with critics questioning the exchange's transparency protocols. The CEO now claims normal operations continue uninterrupted.
Industry-Wide Implications
This incident highlights the perpetual tension between rapid growth and security in crypto infrastructure—another reminder that in digital finance, sometimes the only thing moving faster than blockchain transactions is panic selling. The 10% drop speaks louder than any corporate statement ever could.
CEO Calls Circulating Reports ‘Unfounded’
A Friday Bloomberg investigation uncovered that the attack was carried out by teenage hackers, including 18-year-old Noah Urban of Florida, who emerged as a central figure in the Scattered Spider group behind major breaches at MGM Resorts and other corporations.
The report revealed that the hackers had gained access to an employee’s account through phishing tactics in early 2023, resulting in the exposure of some user data. According to a source cited by Bloomberg, the attack affected the personal data of “a very small number of individuals” and did not compromise any customer funds.
Blockchain investigator ZachXBT later alleged on X that Crypto.com had covered up the incident, claiming the exchange had been breached multiple times.
Marszalek responded to the allegations on X, calling them “misinformation spreading from uninformed sources.” He said suggestions that Crypto.com failed to disclose the breach were unfounded, explaining that the company had reported the matter in a 2023 NMLS filing and to relevant regulators.
The CEO also confirmed that the phishing campaign was contained within hours, did not put funds at risk, and only exposed partial personal data of a limited number of users. He added that the platform’s systems are “battle-tested and continuously improving,” stressing its “security-first culture” and noting that it holds the most security certifications in the industry.
CRO Token Dumps by Over 10%
Cronos (CRO), the native cryptocurrency of the Crypto.com chain, has been on a downward trend in the past seven days. CoinGecko data shows that the token’s price has been hovering around $0.19 to $0.22, shedding 10.8% in the past day and 14.8% over the last week.
Key technical indicators suggest a recent cooling period following a short-lived surge due to a high-profile partnership with TRUMP Media. Earlier this month, the company finalized an agreement with Crypto.com to establish a CRO treasury. The two also have plans to launch a suite of exchange-traded funds (ETFs) and exchange-traded products (ETPs) in the future.
Despite the recent decline, CEO Marszalek remains bullish on Q4 performance. He’s reportedly exploring IPO options while deepening ties with Trump Media & Technology Group. Backed by $1.5 billion in revenue and $1 billion in gross profit last year, Crypto.com continues to rank among the most profitable platforms in the crypto exchange space.
