‘Unauthorized Activity’ Leads to Withdrawal Suspension on Crypto.com

Crypto.com, suspension, withdrawal

Cryptocurrency exchange Crypto.com suspended withdrawals on its platform on Monday (Jan. 17) after users reported “unauthorized activity” on the platform.

According to a CoinDesk report, the platform sent an update that required users to sign back into their accounts and reset their two-factor authentication.

On Monday afternoon, CEO Kris Marszalek tweeted that the company was undergoing final checks of its app and platform before resuming withdrawals for users. Withdrawals were reactivated in the early afternoon Eastern Time.

Other cryptocurrency exchanges have suspended withdrawals and other services on their platforms during spikes in demand at periods of high volatility, according to the CoinDesk report. That includes in November, when Binance disabled all crypto withdrawals due to a large backlog.

Related: Ban Of “Misleading” Ads By UK Regulator Revives Debate Over Crypto Regulation

Earlier this month, the U.K.’s Advertising Standards Authority (ASA) announced it had banned two mobile advertisements by Crypto.com because of the “misleading” nature of the ads. One ad stated, “Buy Bitcoin with credit card instantly,” while another ad said, “Earn up to 3.5% [per annum]” — a number which later increased to “8.5%.”

The ASA ordered Crypto.com to ensure that future ads “made sufficiently clear” how volatile cryptocurrency investments were and clarified that cryptocurrency was unregulated in the U.K.

See also: Crypto.com Closes $700M Deal for Naming Rights to Staples Center in LA

Meanwhile, the building that had been known as Staples Center since it opened in Los Angeles in 1999 became Crypto.com Arena on Christmas Day, after the company signed a 20-year, $700 million deal with the AEG-owned arena for naming rights.

The arena is the official home of the NBA’s Los Angeles Lakers and LA Clippers, the NHL’s LA Kings and the WNBA’s Los Angeles Sparks. The agreement also makes Crypto.com an official cryptocurrency platform partner of the Los Angeles Lakers and the LA Kings.

Crypto.com Arena hosts more than 240 major national and international events “ranging from professional sports, concerts, family and award shows, boxing and special events, including the Grammy Awards, NBA All-Star Games and NHL All-Star Games, among others.”