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Hackers Exploit Drake-Backed Crypto Betting Platform Stake, Stealing Over $35M

Stake, a well-known crypto betting website, was exploited on Monday, with the hackers pocketing more than $35 million in various crypto assets. The gambling company, which popular US-based rapper Drake backs, experienced several unusual transfers yesterday, with $15 million in ETH, USDT, DAI, and USDC leaving its wallets, according to blockchain security company Cyvers.

Additionally, over $20 million stored on Polygon and Binance Smart Chain got drained, according to a report from blockchain sleuth ZachXBT.

Prominent security company Peckshield was the first to inform Stake that its protocol was under attack. The firm said it used an AI-powered system to detect suspicious transactions on the gambling platform. A few hours after Peckshield’s post on X, Stake informed users that an external party had accessed the firm’s crypto wallets and made unauthorized transfers.

The crypto casino assured users that their funds were safe. It added that it was investigating the matter and the hot wallets would be fully operational after resecuring them. For starters, hot wallets are those that offer online storage of cryptocurrencies. They tend to be more vulnerable to attacks than cold wallets, which store crypto assets offline.


Stake Owner Comments on the Latest Hack

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Stake founder Ed Craven took to X to address the hack on his crypto project. He said Stake stores only a minimal portion of its cryptocurrency holdings in hot wallets because the firm is aware of their vulnerabilities. He reiterated Stake’s statement that not a single coin of user funds left the betting platform.

Craven then shared one crypto address to which some of the stolen crypto assets were transferred. He also disclosed that the stolen stablecoins were exchanged for ETH, the second-largest cryptocurrency by market cap.

Hours later, Lead Product Manager at MetaMask, Taylor Monahan, posted a list of all the crypto addresses the hackers used to make the unauthorized transfers. He also shared a chart showing where each stolen crypto asset was transferred to.

Founded in 2017, Stake has received support from several celebrities, including Drake. The music artist entered a $100 million endorsement deal with the gambling site last year. Data from the Financial Times shows that Stake posted a revenue of $2.5 billion in 2022, making the betting platform one of the largest in the world.

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Andrew Richard

Andrew is a news writer for Tokenhell, he enjoys tuning in to the daily crypto markets and writing about the latest updates and happenings.

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