September 5, 2023

Crypto Gambling Site Stake Sees Hack, Losses $41 Million



Yesterday, the crypto gambling site Stake experienced massive withdrawals totaling $41 million.

Blockchain security analysts have dubbed these withdrawals as “suspicious outflows.” The account responsible for the withdrawals has been labeled as “ Hacker” by Etherscan, which suggests that the funds may have been taken using a stolen private key.

According to blockchain data, the attacker made several very large withdrawals from contracts, which were then transferred into their account. The first transaction occurred on Ethereum, which saw approximately $3.9 million worth of stablecoin Tether transferred from Stake to the attacker’s account. The next two transactions saw the removal of 6,001 Ether, worth roughly $9.8 million at the current market price.

The attacker continued to make withdrawals over the next few minutes, including approximately $1 million in USD Coin, $900,000 worth of Dai, and 333 Stake Classic (STAKE) tokens worth $75.48. Cybersecurity experts estimate that the total value of the drained crypto is around $16 million.

Multiple accounts received funds from the alleged attacker after draining them. Stake confirmed the hack on their ETH/BSC hot wallets through social media. The team stated that they are investigating the issue and will re-secure the wallets before putting them up again. They also assured users that their funds are safe.

Stake’s co-founder, Ed Craven, clarified that they keep a small portion of their crypto reserves in hot wallets for these situations. He implied that the losses are a small percentage of the total reserves and will not affect users.

Beosin, a smart contract auditor, reported that the attack happened on chains like BNB Smart Chain (BSC) and Polygon. According to Beosin, the total losses amount to over $41 million, with $17.8 million lost on BSC and $7.8 million on Polygon.

Stake is a cryptocurrency gambling platform that features a variety of games, including dice, blackjack, lingo, and sports betting options for basketball, tennis, volleyball, and more.

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