Bloomberg just dropped a bombshell linking Crypto.com to a breach carried out by the Scattered Spider hacker collective, a group infamous for social-engineering attacks on big corporations.
Investigators traced the intrusion back to Noah Urban, a Florida teenager who tricked employees into handing over credentials and later pleaded guilty to wire fraud.
Crypto.com insists the fallout was minor, affecting only a ‘small number’ of individuals and, crucially, no customer funds.
Still, the revelation has reignited a heated debate: can you really trust exchanges to be upfront about security incidents? Transparency gaps make it clear that the real risk isn’t just losing coins, but having your data exposed.
That’s why more people are shifting toward self-custody. And with wallets like Best Wallet combining security tech with real utility, it’s becoming easier to protect both your assets and privacy.
Investigators say Noah Urban, just 20 years old, played the role of a ‘caller’ inside the Scattered Spider collective. His job was to impersonate IT staff, phish employees, and coax them into handing over credentials.
With that access, the crew slipped into internal systems, part of a spree that hit more than 200 companies through SIM swaps, phishing campaigns, and even data stolen from UPS records.
Authorities eventually seized $4.8M in crypto from Urban’s devices and tied him to at least $25M in damages. A U.S. court ordered $13M in restitution to dozens of victims, and last month sentenced Urban to 10 years in prison.
Crypto.com, meanwhile, maintains that the breach was limited. The exchange says it disclosed the incident to regulators, only a ‘very small number’ of individuals had their personal information exposed, and no customer funds were touched.
Critics aren’t so convinced, arguing that a lack of open disclosure undermines user trust and raises fresh doubts about exchange transparency.
This incident has now sparked a wider debate: should exchanges disclose every breach, no matter how ‘contained’? Critics argue yes, because even limited intrusions reveal weaknesses that could be exploited again.
On-chain investigator ZachXBT went further by accusing the platform of deliberately downplaying the incident to protect its image.
This isn’t an isolated concern. Coinbase failed to stop considerable social engineering attacks, claims ZachXBT, a failure that left customers exposed to over $300M in yearly losses, showing how quickly these events can spiral.
The problem lies in centralized Know Your Customer (KYC) databases. By forcing millions of people to upload IDs, addresses, and financial details, exchanges create giant databases that hackers target relentlessly.
Security researcher Pcaversaccio sums it up bluntly on X:
‘You can change your password easily, but not your passport, and they know it.’
That line hits home. When you trust an exchange with your identity, you’re not just risking your coins; you’re risking the personal details that define who you are.
The Crypto.com breach is another reminder that self-custody cuts out the biggest risk of trusting a centralized exchange with both your funds and your personal data.
When you leave assets on an exchange, you’re not just exposed to hacks; you’re tied to a massive KYC database that hackers target again and again.
Incidents at Crypto.com, Coinbase, and high-profile SIM-swap cases all prove the same point: exchanges remain prime attack surfaces. By contrast, crypto wallets give you control. They don’t hold your ID, they don’t stockpile your sensitive data, and they don’t gamble with your trust.
But not all wallets are built the same. If you want real protection along with modern features, you need something that moves beyond simple storage. That’s where Best Wallet, with its $BEST utility token, is starting to stand out.
Best Wallet positions itself as the next-gen alternative to MetaMask, blending compliance with a far more user-friendly design. At its core, it runs on Fireblocks MPC-CMP, the same multi-part computation tech trusted by major institutions, giving you custody-grade protection without the complexity.
Its built-in crypto launchpad has also already helped fund several new presales, stepping in as a middleman and eliminating scam mirror sites that usually trip up retail buyers.
The wallet’s built-in token scanner is another DeFi-friendly security tool that blocks suspicious cryptos, protecting you from copycats and other DEX token traps.
The traction speaks volumes: a 60K+ following on X and 50% month-on-month user growth. Instead of learning about exchange breaches after the fact, you can cut risk upfront with tools designed to secure you.
The ecosystem revolves around the $BEST token, the wallet’s native cryptocurrency backed by several noteworthy holder perks.
Holding $BEST means reduced transaction fees, early presale access, and governance rights, plus the chance to earn an impressive 83% APY through staking.
The presale has already raised more than $16M, with tokens now priced at $0.025675. The project is still in phase 2, with Best Wallet working on expanding its network support to 60+ chains.
Looking further ahead in phase 3, the upcoming Best Card will let you spend crypto like cash while earning cashback and enjoying lower fees.
While exchanges wrestle with lawsuits and hacks, Best Wallet offers institution-grade security, full self-custody, and real utility built to meet your daily crypto needs.
Join $BEST’s presale and get governance perks within Best Wallet.
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