Key Takeaways
- ZachXBT alleges Crypto.com covered up a major past security incident.
- The alleged incident differs from past events involving ETH transfers and stablecoin backing, which was revealed by Coinbase’s Conor Grogan.
Crypto.com suffered a massive blowup in the past that it never disclosed, according to prominent on-chain sleuth ZachXBT. His claim came on Tuesday after the exchange announced an expanded partnership with Trump Media & Technology Group, which operates Truth Social, President Trump’s social platform.
ZachXBT stated that he is not allowed to share details of the incident at this time.
Asked by Conor Grogan, Coinbase’s head of product, if the incident was connected to the 320,000 ETH sent to a competitor or an event where stablecoins on their chain reportedly lacked proper backing, ZachXBT replied that it was “obviously something else.”
Crypto.com first announced its strategic collaboration with Trump Media in April of this year, with their initial focus being on creating a series of exchange-traded funds and products linked to Bitcoin, Cronos, and US-centric industries like energy.
The exchange, however, faced criticism for reissuing 70 billion CRO tokens that had been burned in 2021, deemed a breach of the crypto community’s expectations of decentralization and transparency.
Crypto.com CEO Kris Marszalek defended the decision, citing changes in the US political climate that require strategic, aggressive investments. Some observers also raised concerns about potential voting manipulation, given Crypto.com’s control over a huge portion of voting power.
Trump Media and Crypto.com said today they were working toward establishing Trump Media Group CRO Strategy, a new digital asset treasury company that will focus on accumulating CRO tokens.
Source: https://cryptobriefing.com/crypto-com-security-incident-allegation/
