CRYPTO.COM users have been left unable to access their cash after the company suspended withdrawals due to “unauthorised activity” on some accounts.
Crypto.com is a crypto exchange that can be used to buy and sell a range of popular cryptocurrencies like bitcoin and ethereum.
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In a tweet on Monday the company said: “Earlier today a small number of users experienced unauthorized activity in their accounts. All funds are safe.
It said that out of an “abundance of caution” it is enhancing security on all accounts and that requires users to sign back in and reset two factor authentication.
After that users should be able to access their accounts again.
“We understand this may be an inconvenience, but security comes first,” crypto.com added.
Shortly after it said that withdrawals have been restored but that it would “take time to clear the backlogs”.
Some users are still reporting issues getting access to their accounts.
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Angry users have complained to the company on Twitter.
One said: “I’m not a happy NEW customer. I cannot withdraw my coins for ANOTHER 24 hours even though I had this address whitelisted before. I will NOT be using your service from her on out “
Another said: “Why are you Restricting my Crypto Withdraw? I’ve been waiting 5 hours to receive my eth in my metamask. Crypto.com is actually not letting any withdrawal go through.”
Being unable to access your money is one of several risks when investing in cryptocurrencies.
If an exchange goes down you can be locked out, and there’s no guarantee when you could get back in.
Cryptocurrencies are extremely volatile and prices can go down as well as up in a blink of an eye.
If you’re unable to access your cash, you could find your investments drop in value and you lose money.
Cryptocurrencies also come with no consumer protection like regulated financial products, so there’s no one to complain to if things go wrong.
You should never invest in something you don’t understand or put in money that you can’t afford to lose.
Last year users of cryptocurrency exchange Binance were unable to access their cash after suspending UK withdrawals.
And Etoro customers were locked out of their accounts after the service went down during a crypto crash.
Crypto.com has also created its own digital coin with the same name, which plunged as much as 5% after the suspension was announced.
The crypto.com coin has now recovered somewhat and is trading at $0.4449 at the time of writing according to coinmarketcap, down 2% in the past 24hours.
Crypto.com has been promoted by Hollywood star Matt Damon in a cringeworthy video for the company.
Other stars have been caught out promoting risky cryptocurrencies.
Kim Kardashian is being sued for allegedly “scamming investors” after promoting a cryptocurrency company via adverts to her 250million Instagram followers.
Europe’s ‘most wanted crypto scammer’ is arrested as cops seize £1.5million worth of luxury supercars
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This post first appeared on thesun.co.uk
