Hackers have managed to steal more than $40 million in cryptocurrency from Stake.com, a prominent online betting platform that specializes in cryptocurrency transactions. The Curaçao-based company offers a variety of betting options, including casino games and sports betting, all conducted using digital currencies.
The security breach was discovered when unauthorized transactions were detected from Stake.com’s Ethereum and Binance Smart Chain hot wallets. These hot wallets are less secure than cold wallets as they can be accessed remotely, making them vulnerable to hacking attempts. The firm reassured its users that their funds were safe and that investigations were underway to secure the compromised wallets.
Fortunately, not all of Stake.com’s wallets were affected by the breach. Bitcoin, Litecoin, Ripple, EOS, and Tron wallets remained untouched, providing some relief to the platform’s users. Despite this, the stolen funds amounted to a significant loss for the company, prompting immediate action to address the security breach.
After identifying the unauthorized transactions, Stake.com quickly remediated the issue and resumed its services. Deposits and withdrawals were once again processing instantly for all supported cryptocurrencies. The company apologized for any inconvenience caused by the incident and assured its users that their funds were secure moving forward.
The breach was initially detected by blockchain security firm Cyvers, whose AI monitoring tools flagged suspicious activity involving the withdrawal of $16 million worth of Ethereum from Stake.com. Further investigation by blockchain expert ZachXBT revealed an additional $25.6 million in Binance Smart Chain and Polygon cryptocurrencies were also drained from the platform’s hot wallets.
Hot wallets have become a common target for cybercriminals and state-sponsored actors seeking to exploit vulnerabilities in cryptocurrency platforms. In a similar incident, Kaspersky warned of a malicious email campaign that distributed scam messages to thousands of recipients during the spring of 2023.
The security breach at Stake.com serves as a reminder of the importance of robust security measures in safeguarding digital assets. As the popularity of cryptocurrency continues to rise, ensuring the protection of funds against cyber threats remains a top priority for online platforms and their users.