Stake.com Temporarily Halts Withdrawals After Alleged $40 Million Security Breach
Hey there! We have some news about Stake.com, the popular online casino and sportsbook. Unfortunately, they’ve had to put a temporary hold on withdrawals due to a suspected security breach. It all started when security firm Cyvers noticed some abnormal transfers from Stake.com’s Ethereum wallets to unknown addresses.
Cyvers’ AI system flagged multiple suspicious transactions involving stablecoins like Ethereum, USD Coin, Tether, and DAI. These stablecoins were converted into Ethereum and sent to external accounts. The hacker responsible for this breach has been identified by Etherscan, the Ethereum blockchain explorer.
Another security firm, Peckshield, also raised concerns about the situation on social media. On-chain analyst ZachXBT confirmed that around $40 million had been moved illicitly across multiple blockchain networks.
Reassurance and Plans for Recovery
But don’t worry, Stake.com has reassured its users that their funds are safe. In a post on X (formerly Twitter), they explained that unauthorized transactions occurred from their Ethereum and Binance Smart Chain hot wallets. They are currently working on securing these wallets. The wallets for other cryptocurrencies like Bitcoin, Litecoin, XRP, EOS, and TRON are unaffected.
Ed Craven, co-founder of Stake.com, also chimed in, stating that only a small fraction of their crypto reserves are kept in hot wallets for emergencies. He assured users that the affected wallets will be operational again soon.
Hot Take
This security breach has certainly shaken things up for Stake.com and its users. It serves as a reminder to always stay vigilant when it comes to online security, especially with your cryptocurrency. Hopefully, Stake.com will be able to recover quickly and strengthen their security measures to prevent similar incidents in the future.
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