Crypto.com Secret Leak Sparks Crypto Exchange Transparency Controversy, What’s Up?

Updated

September 22, 2025

Gambar Crypto.com Secret Leak Sparks Crypto Exchange Transparency Controversy, What’s Up?

Jakarta, Pintu News – According to a Bloomberg investigation, Crypto.com, one of the world’s largest crypto exchanges, allegedly suffered an undisclosed security breach. The incident has been attributed to Scattered Spider, a hacker group that often targets companies with social engineering tactics. The group consists of teenagers who are experts at tricking employees into handing over their credentials.

Cyberattack Disguise

so crypto[.]com had their system breached and never disclosed it (thx @zachxbt for making me aware of this). So many data breaches over the last years. Listen now carefully: KYC is the most fucking scam ever. It's the most stupid security & compliance theatre and a _loaded_ gun… pic.twitter.com/kyHmiPombS
— sudo rm -rf –no-preserve-root / (@pcaversaccio) September 21, 2025

The Bloomberg report mentions that the attackers posed as IT staff and managed to convince several Crypto.com employees to hand over their login credentials. After gaining access, they tried to increase their access by targeting senior staff accounts.

Crypto.com informed Bloomberg that the attack affected only a “small number of individuals” and emphasized that customer funds remain safe. However, the company has not provided any additional information regarding the incident to date.

Also Read: 3 Risks of Major Liquidation in Crypto Market in September 2025 that Traders Need to Be Aware of

Criticism of Incident Closure

Michael, a couple thoughts on this:

1. The data hasn't been dumped on the dark web yet. We will see if that holds, but if the attacker is smart they will know they have nothing to gain from this, and everything to lose if they become an accessory to more serious crimes.…
— Brian Armstrong (@brian_armstrong) May 20, 2025

On-chain investigator ZachXBT accused Crypto.com of deliberately covering up the leak. He also emphasized that this is not the first time the platform has been associated with undisclosed security leaks.

These comments reflect broader disappointment in the industry with exchanges that tend to downplay breaches to protect their reputation. This criticism adds to a long list of concerns about how crypto exchanges manage and protect user data.

KYC and Industry Criticism

The incident also reignited criticism of the industry’s reliance on Know Your Customer (KYC) systems. The pseudonymous security researcher Pcaversaccio reacted strongly to the issue, arguing that KYC requirements create a huge data warehouse that is attractive to hackers.

These concerns are in line with broader skepticism in the industry about the regulatory framework. Earlier, Coinbase CEO, Brian Armstrong, criticized the Bank Secrecy Act and existing anti-money laundering rules as outdated and ineffective. According to him, companies are forced to collect sensitive data that ultimately does little to prevent crime despite being burdensome on companies and customers.

Conclusion

The Crypto.com case serves as a warning to the entire crypto industry about the importance of data transparency and security. Undisclosed leaks and failure to manage data access can undermine user trust and market integrity.

As blockchain technology evolves, demands for greater transparency and security are becoming increasingly critical. The industry needs to respond with stricter standards and more open communication to rebuild public trust.

Also Read: Uniswap Price Prediction 2025-2031: Will UNI Remain Stable?

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