Stake.com Impacted by Cyberattack, Loses $41 Million

The iGaming and crypto betting giant, Stake.com, was the latest victim of an attack from hackers that resulted in losses of some $41 million in cryptocurrencies. The crypto betting and online gambling platform confirmed that it has identified unauthorized transactions on Monday via a post on X, formerly Twitter. Stake revealed that unauthorized transactions were made from its ETH/BSC hot wallets.

Upon the initial announcement, the company said that it was investigating the issue further. Additionally, it said that the funds of its users are safe and its BTC, XRP, LTC, TRX and EOS, along with other wallets are operational. Still, in light of the hackers’ attack, the company temporarily disabled withdrawals.

“Three hours ago, unauthorized 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,“

reads a statement released by Stake.com on Monday

A few hours later, Stake released another statement, confirming the resumption of all of its services. The company revealed that withdrawals and deposits for all of its currencies were resumed. Moreover, Stake apologized for the inconvenience.

According to Etherscan, an account labeled as “Stake.com Hacker” withdrew approximately $41 million in separate transactions. The reason for the breach is believed to be a leaked private key.

The globally recognized security company, Beosin, released details regarding “multiple suspicious outflows” Stake experienced. It estimated that the total funds were $41.35 million. The first transaction on Ethereum was $3.9 million in stablecoin Tether. The funds were transferred from the Stake account to the alleged hackers’ account. Additional transactions included $9.8 million in Ether, as well as some $1.1 million in USD Coin and $900,000 worth of Dai.

Besides on Ethereum, the cyberattack reportedly occurred on Polygon and BNB Smart Chain (BSC) which saw some $7,825,000 and $17,825,540 in withdrawals respectively.

Although an investigation is ongoing, it remains unclear if Stake would be able to recover the $41 million lost in the attack. Currently, all cryptocurrency transactions are recorded on a transparent and decentralized ledger, making them somewhat traceable.