Crypto.com Faces Renewed Scrutiny as Reports Question Breach Disclosure and Token Declines

CEO Denies Allegations Amid Data Exposure Claims and CRO Price Drop

September 22, 2025, brought renewed scrutiny to Crypto.com after fresh reports resurfaced about a 2023 security breach that investigators now claim was more severe than originally acknowledged. Blockchain sleuth ZachXBT alleged that the exchange attempted to downplay the scale of the incident, suggesting undisclosed cyberattacks compromised a broader range of user information than CEO Kris Marszalek admitted at the time. Bloomberg’s earlier reporting had also pointed toward deeper flaws, claiming user data exposure extended well beyond transaction records, a detail that raised fresh concerns about the company’s transparency.

Marszalek responded to the allegations with a firm rejection, dismissing them as “misleading” and reiterating that Crypto.com never covered up a hack. He stressed that no customer funds were lost and that the exchange had reinforced its security framework following the 2023 event. Still, Protos highlighted internal findings and external cybersecurity assessments indicating the scale of compromised information went further, with leaked details believed to include user identification, account activity logs, and internal system records, though the full numbers were never made public.

The fallout extended into markets as Crypto.com’s native Cronos token slid roughly 10% on the day before partly recovering, signaling shaken investor confidence despite official denials. The decline was particularly notable against the backdrop of the broader crypto price index, where other leading tokens held relatively stable. Observers noted that the exchange’s coin market cap valuation faced renewed volatility as trust questions resurfaced, underscoring how security controversies can quickly impact token performance and trading sentiment.

Marszalek emphasized that the company remains fully compliant with regulations and continues to work alongside external auditors to ensure the robustness of its cybersecurity measures. Even so, the divide between official statements and independent reports left industry participants questioning whether centralized exchanges can balance the risks of reputational damage with the responsibility to disclose security incidents transparently. For traders tracking crypto price trends, the episode highlighted how confidence in exchanges can influence valuations beyond fundamentals, with the CRO dip serving as a reminder of how quickly trust can sway the market.

This article has been refined and enhanced by ChatGPT.