Crypto news

Stake, a crypto gambling platform, experiences a confirmed hack resulting in a $41 million withdrawal.

On September 4, the crypto gambling platform Stake encountered suspicious outflows, with $41 million being withdrawn.

Blockchain security analysts have identified the withdrawing account as “Stake.com Hacker” on Etherscan,

indicating the possibility of stolen private keys being used to drain the funds.

The initial transaction took place on Ethereum at 12:48 pm, transferring around $3.9 million worth of Tether stablecoin from Stake to the attacker’s account.

Subsequently, two more transactions removed 6,001 Ether, valued at approximately $9.8 million based on the current price.

The attacker continued to drain tokens in the following minutes,

including approximately $1 million in USD Coin, $900,000 worth of Dai, and 333 Stake Classic (STAKE) tokens, valued at $75.48.

Cybersecurity experts estimate the total value of the cryptocurrency drained to be $16 million.

Crypto Gambling Site Stake Faces Massive Hack, Resulting in $41 Million Loss and Multiple Chain Disruption

Crypto Gambling Site Stake

During the alleged attack, the attacker distributed the drained funds from Stake to multiple accounts.

Stake acknowledged the hack through their social media channels,

stating that unauthorized transactions occurred from their ETH/BSC hot wallets three hours ago.

The team provided assurance to users that they are actively investigating the incident and will restore the wallets as soon as they have fully secured them.

They also stated that user funds remain safe.

Co-founder Ed Craven emphasized that Stake keeps only a small portion of its crypto reserves in hot wallets to mitigate such risks,

implying that the losses incurred are relatively minor and should not impact users.

Smart contract auditor Beosin reported that the attack extended beyond Ethereum,

affecting other chains like BNB Smart Chain (BSC) and Polygon.

According to Beosin’s estimates, the losses on Polygon amounted to an additional $7.8 million,

while losses on BSC reached $17.8 million, surpassing a total of $41 million in combined losses.

Stake is a crypto gambling protocol that offers various casino games, including dice games, Blackjack,

Lingo, and sports betting options for basketball, tennis, and volleyball, among others.

Hackers have targeted crypto gambling sites in a similar pattern throughout 2023, making this incident part of a continuing trend.

On July 23, payments provider Alphapo experienced suspicious withdrawals amounting to $31 million.

Alphapo served as a provider for multiple crypto-gambling platforms,

including Hypedrop, Bovada, and Ignition.

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