In a surprising event, the well-known crypto gambling platform Stake.com has been hit by a major cyberattack, resulting in a loss of $41 million. This incident reminds us of the risks in the cryptocurrency world, as hackers exploit weaknesses in exchanges and wallet providers.
Established in 2017, Stake.com has gained popularity and attracted a global clientele. Operating in multiple countries, it has become the seventh-largest gambling group, generating $2.6 billion in revenue in 2022. Unfortunately, this rise in popularity has made it a target for hackers.
The recent attack on Stake.com involved hackers stealing 6,001 Ether from the platform’s wallets, totaling almost $9.8 million. The hackers cleverly converted the stolen Ether into other cryptocurrencies and transferred them to external wallets, covering their tracks.
Stake.com took action when they noticed suspicious outflows from their wallets. Deposits and withdrawals were temporarily stopped to prevent further losses. Thankfully, these services were reinstated within a few hours, minimizing disruption for users.
Although Stake.com holds gambling licenses in Mexico and Paraguay, cybercriminals still managed to gain unauthorized access to the platform’s wallets through a private key leak.
The stolen funds included not only Ether but also approximately $3.9 million worth of Tether from Stake.com’s wallet. Additionally, $25.6 million in cryptocurrencies were stolen from the platform’s wallets on Polygon and Binance Smart Chain, adding to the significant loss.
Despite this attack, Stake.com assures users that their funds, except for the drained amounts, are secure. Other wallets on the platform, such as BTC, LTC, XRP, EOS, TRX, and more, are fully operational, providing some relief to users.
This attack on Stake.com is happening in a time of rampant cyberattacks on crypto wallets. In 2022 alone, hackers stole over $3.7 billion in cryptocurrencies, highlighting the urgent need for improved security measures in the cryptocurrency industry.
To enhance security and prevent future cyberattacks, Stake.com is seeking licenses in Australia and Canada. These licenses will provide additional protection to users and their funds.
In response to this attack, Stake.com promises to improve its security measures and conduct a thorough investigation to identify vulnerabilities. Founders Ed Craven and Bijan Tehrani are committed to restoring user trust and safeguarding their funds.
This incident is a wake-up call for the cryptocurrency industry, emphasizing the importance of implementing strong security measures. While cyberattacks decreased by 70% last year, platforms and providers must remain vigilant against evolving tactics used by cybercriminals.
Cybersecurity remains a challenge in the digital realm, and the substantial loss suffered by Stake.com highlights the need for continuous improvement in protecting user funds. As the crypto industry evolves, platforms must prioritize security to shield users from cyberattacks.