The crypto betting platform Stake faces allegations of a staggering $41 million security exploit.
Known for its high-profile endorsement deal with Canadian rapper Drake, Stake is now at the epicenter of a multimillion-dollar hack.
Crypto Betting Platform Exploited
Security firm Cyvers first sounded the alarm, reporting a “private key leak.” Allegedly, the leak led to the unauthorized withdrawal of around $16 million in various cryptocurrencies, including Ethereum, Tether, USD Coin, and DAI.
ZachXBT, a pseudonymous crypto sleuth, supplemented this, revealing an additional $25 million siphoned off from Polygon and Binance Smart Chain.
Although Stake has issued a public statement stating it is investigating the “unauthorized” transactions and that users’ funds are safe.
“Three hours ago, unauthorised 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,” read the statement.
Meanwhile, Eddie Craven, co-founder of Stake, affirmed that Stake maintains a minimal amount of its cryptocurrency holdings in hot wallets to mitigate risks. And that impacted wallets are expected to resume normal operations soon.
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Moreover, MetaMask Lead Product Manager Taylor Monahan observed that the hackers behind this exploit operate “methodically,” further intensifying the mystery. Monahan also shared all the addresses of Stake involved in the hack.
The incident has cast an unsettling spotlight on the vulnerabilities of crypto platforms. Even those with celebrity endorsements and high revenues.
Just last year, Stake reported a revenue of $2.6 billion. Meanwhile, its partnership with Drake involved a jaw-dropping $100 million per year endorsement deal. These numbers now appear inconsequential when set against the loss of $41 million.
Read more: Cryptocurrency Casino and Betting Platform Stake.com Hit With $400M Lawsuit
With regulators increasingly concerned about the stability and security of online crypto platforms, this incident could catalyze more stringent oversight. Stake’s high-profile nature makes the platform’s exploit a poster child for the kind of risks involved in the cryptocurrency industry.
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