Stake.com Crypto Casino Reportedly Hacked for $41.3 Million

04/09/2023 | Categories: News | Published by: BTCGOSU | Last updated: 05/01/2024

In a shocking turn of events, popular cryptocurrency casino Stake.com has fallen prey to a costly security exploit, resulting in the loss of over $41.3 million worth of funds across multiple blockchains. This report delves into the details surrounding this significant breach.

Private Key Leak: The Initial Blow

The incident was first brought to light by analyst Cyvers, who revealed a reported private key leak that facilitated the withdrawal of $15.7 million in ether (ETH) from Stake.com’s Ethereum wallet. This marked the beginning of a widespread attack on the platform’s assets.

ZachXBT Unveils the Extent of the Exploit

Crypto sleuth ZachXBT joined the investigation, disclosing that not only had $15.7 million in ETH been siphoned off but also an additional $25.6 million was stolen from Stake.com’s Polygon and Binance Smart Chain wallets. These ill-gotten funds were subsequently converted to ETH and transferred to various external wallets.

Suspicious Transactions and Hacker Identification

On September 4th, the site experienced a staggering $15.7 million in withdrawals, labeled as “suspicious transactions” by the security platform Cyvers Alerts. Etherscan, a prominent blockchain explorer, identified the withdrawing account as “Stake.com Hacker,” hinting at the possibility of a stolen private key.

Stake.com’s Financial Profile and Ongoing Complications

Stake.com, a crypto casino, and sportsbook that raked in an impressive $2.6 billion in revenue in 2022, still retains approximately $2.4 million within its compromised Ethereum wallet, according to Etherscan data. Withdrawals from the platform have been temporarily halted, aligning with user reports on Twitter.

Unanswered Questions and Official Statement

Despite the seriousness of the situation, Stake.com has yet to issue an official statement regarding the reported multimillion-dollar hack. This has left many of the platform’s customers with unanswered questions, causing them to feel uncertain about the situation.

We are guessing they are scrambling to stop any other vulnerabilities and will release a statement as soon as they know the extent of the hack.

The Broader Picture: Persistent Vulnerabilities

This incident underscores the vulnerability of cryptocurrency platforms, as security weaknesses persistently expose user funds to potential breaches. It serves as a stark reminder of the “Hacktober” wave of breaches that plagued the industry last year.

A Troubling Pattern in 2023

Regrettably, Stake.com is not the first crypto-gambling site to face a security breach in 2023. On July 23, payments provider Alphapo experienced a similar ordeal, with $31 million in suspicious withdrawals. Alphapo served as a provider for several crypto-gambling sites, including Hypedrop, Bovada, and Ignition.

This comprehensive report explores the recent hacking incident at Stake.com, highlighting the significant loss of funds, the ongoing concerns about security in the crypto industry, and drawing attention to the broader pattern of vulnerabilities plaguing the sector in 2023.