In a recent turn of events, the Ethereum-based crypto betting platform, Stake, temporarily halted its operations following reports of a significant hack that allegedly drained $40 million from its accounts. The platform, which allows users to place wagers on games or sports, did not directly confirm the hack but referred to the incident as "unauthorized transactions." Stake assured its users that their funds were safe.
Stake's official announcement on the matter read, "Three hours ago, unauthorized tx's were made from Stake's ETH/BSC hot wallets. We are investigating and will get the wallets up as soon as they're completely re-secured. User funds are safe. BTC, LTC, XRP, EOS, TRX + all other wallets remain fully operational." This statement came to light after several blockchain security firms reported suspicious movements of substantial funds on its platform.
Cyvers, a blockchain security firm, was among the first to raise concerns. The firm flagged that approximately $16 million in stablecoins were converted to Ethereum. Another on-chain sleuth, ZachXBT, estimated that around $40 million had been siphoned off across Ethereum, Polygon, and BNB Smart Chain networks.
Etherescan, a renowned Ethereum blockchain explorer, flagged the address believed to be involved in the unauthorized fund movement, labeling it as "Stake.com Hacker."
However, Stake was quick to address the situation. Four hours post their initial announcement, they updated, "All services have resumed! Deposits & withdrawals are processing instantly for all currencies. We apologize for any inconvenience." Furthermore, as a gesture of goodwill and to restore market sentiment, Stake introduced a user compensation initiative. They announced, "Due to the recent Stake exploit, Stake is issuing a temporary user compensation distribution to all users... All users who have interacted with Stake and its affiliates are eligible to claim."
This incident serves as a reminder of the vulnerabilities associated with crypto platforms. Earlier this year, Alphapo, a payment provider for various crypto gambling sites, reportedly suffered suspicious withdrawals amounting to $31 million.
As the crypto industry continues to grow, such incidents underscore the importance of robust security measures and the need for platforms to ensure the utmost safety of user funds. Stake's prompt response and user compensation initiative are commendable, but the episode raises questions about the broader security landscape of crypto platforms.
