In 2023 [7], Stake.com [1] [2] [3] [5] [6] [7] [8], a leading betting platform that operates with cryptocurrency, experienced a security incident resulting in a significant loss [6] [7]. This incident raises concerns among blockchain security experts and highlights the vulnerability of crypto gambling sites to hackers.
Description
Stake.com [1] [2] [3] [5] [6] [7] [8], a self-proclaimed “world’s leading betting platform,” suffered a security breach in 2023, leading to an estimated loss of up to $40 million. Hackers targeted the firm’s hot wallets on the Ethereum and Binance Smart Chain networks, executing unauthorized transactions and transferring the stolen cryptocurrency to external wallets. The incident was initially detected by blockchain security company Cyvers [3], who flagged the withdrawal of approximately $16 million worth of Ethereum from Stake.com. Further investigation revealed that an additional $25.6 million in Binance Smart Chain and Polygon was drained from the hot wallets [3]. The hacker also converted stablecoins into ETH and dispersed them to third-party accounts [1]. Prior to the hack, Stake.com had moved an additional $20 million to the same wallet [1]. As a result [1], Stake.com’s wallet now holds about $2 million worth of assets [1]. The Ethereum blockchain explorer Etherescan identified the address responsible for the funds transfer and labeled it as the “Stake.com Hacker.” Stake.com temporarily halted withdrawals for investigation but has since resumed all services. This incident is not the first time that crypto gambling sites have been targeted by hackers [2].
Concerns have been raised among blockchain security experts due to suspicious crypto outflows from Stake.com, an online gambling platform that accepts cryptocurrency bets [4]. The transfers of Ethereum (ETH) and stablecoins such as USD Coin, Tether [4] [5], and DAI from known wallets have caught the attention of the crypto community [4]. The irregular transactions involve conversions from stablecoins to ETH [4], which is seen as suspicious because Ethereum cannot freeze ETH holdings like Tether can [4]. The transfers occurred between 8:52 a.m [4]. ET and 10:05 a.m [4]. ET [1] [4], and Stake.com’s official Telegram channel announced temporary maintenance for Ethereum and BSC/ERC20 networks shortly after [4]. Blockchain investigators have also tracked significant amounts of money on the BNB Chain and the Polygon PoS chain [4]. Stake.com [1] [2] [3] [5] [6] [7] [8], a Curacao-based platform [4], allows users to place bets using cryptocurrencies and traditional currencies [4]. It is worth noting that Stake.com is currently involved in a trademark infringement lawsuit and is facing a $400 million claim from a former associate against its founders [4].
Conclusion
This security incident at Stake.com has significant implications for the platform and the broader crypto gambling industry. It highlights the need for enhanced security measures to protect against hackers and unauthorized transactions. Stake.com’s decision to temporarily halt withdrawals and launch a user reimbursement program demonstrates their commitment to restoring market sentiment and addressing the concerns of their users. However, the incident raises questions about the overall security and trustworthiness of crypto gambling sites. It serves as a reminder that the crypto industry must remain vigilant and proactive in implementing robust security protocols to safeguard user funds.
References
[1] https://insidebitcoins.com/news/crypto-casino-stake-com-seen-hit-by-40-million-hack
[2] https://dnyuz.com/2023/09/05/crypto-betting-platform-stake-resumes-operations-after-reportedly-suffering-40m-hack/
[3] https://www.infosecurity-magazine.com/news/crypto-casino-stakecom-online-40m/
[4] https://coinengineer.io/blog/suspicious-40m-crypto-outflows-from-stake-raise-hack-concerns/
[5] https://tradeforprofit.net/2023/09/crypto-casino-stake-com-allegedly-hit-by-40m-security-breach-heres-what-happened/
[6] https://www.tradingview.com/news/benzinga:5ed7938aa094b:0-the-great-stake-com-robbery-of-40m-amplifies-calls-for-stricter-digital-safeguards/
[7] https://www.benzinga.com/markets/cryptocurrency/23/09/34290360/the-great-stake-com-robbery-of-40m-amplifies-calls-for-stricter-digital-safeguards
[8] https://www.benzinga.com/markets/cryptocurrency/23/09/34218775/crypto-casino-stake-com-allegedly-hit-by-40m-security-breach-heres-what-happened
