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- 1 A crypto casino is back in action with all its services after a security breach.
- 2 The security breach led to a temporary hold on withdrawal from the crypto casino.
An online crypto casino, Stake(dot)com, resumed all its working operations as it recently shared an X (Twitter) post on September 5, 2023. It must be noted that Stake(dot) com put a temporary hold on withdrawals as it became the target of an alleged $40 Million security breach.
Stake(dot)com has made its response as it reassured its users by adding in its X post that “their users’ funds are safe.” The crypto casino also stated that unauthorized transactions had occurred from their Ethereum. While the one other blockchain’s hot wallets and that they were in the process of re-securing these wallets.
It also mentioned that wallets for all other cryptocurrencies, such as Bitcoin, Litecoin, XRP, EOS, and TRON are still fully functional. Almost an hour later, Ed Craven, Australia’s youngest billionaire and co-founder of Stake(dot)com, also posted on X. He stated that “the company keeps only a small fraction of its crypto reserves in hot wallets for such emergencies and assured that the affected wallets would be operational soon.”
The Security Breach in Crypto Casino
According to a media outlet, in Stake(dot)com, the issue was first brought to light by the security firm, Cyvers. The firm has detected some abnormal transfers moving away from the Ethereum wallets of Stake(dot)com to an unidentified address.
After this identification, the AI system of the security firm flagged multiple suspicious transactions involving various cryptocurrencies such as “Ethereum, USD Coin, and DAI.” However, the stablecoins were later converted into Ethereum and distributed to different externally owned accounts.
Moreover, Etherscan, the Ethereum blockchain explorer, identified that the address linked to all these unauthorized transfers was connected to a hacker who was targeting the crypto casino. Moreover, another security firm, Peckshield, also alerted its social media followers. The firm suggested that Stake(dot)com should investigate the situation.
However, an on-chain analyst, ZachXBT, a renowned on-chain analyst, made the confirmation that $40 Million had been “illicitly moved across different blockchain networks, including Ethereum.”
However, a blockchain security firm, Beosin mentioned in its X (Twitter) post that the total funds were nearly $41.35 Million.
In mid-July 2023, a cryptocurrency payment service provider, Alphapo, reportedly suffered a significant security breach within its hot wallet. This resulted in a loss of more than $60 Million, whereas some reports suggest total losses could amount to nearly $100 Million, as to De(dot)Fi, the Web3 antivirus company noted. Notably the original hack was discovered on July 23, 2023, by blockchain investigator, ZachXBT.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
