5-9-2023 (LONDON) Crypto betting platform Stake has swiftly recovered from a hack that reportedly saw approximately $41.3 million in digital assets compromised, according to estimates from blockchain security firms.
The incident prompted Stake to suspend deposits, withdrawals, and services temporarily. However, the platform managed to resume normal operations within just five hours after the breach. All services were officially reinstated at 9:28 pm UTC time on September 4.
All services have resumed! Deposits & withdrawals are processing instantly for all currencies. We apologise for any inconvenience. ????
— Stake.com (@Stake) September 4, 2023
The attack primarily targeted Stake’s Ethereum (ETH) and Bitcoin (BTC) hot wallets. While the platform has confirmed that Bitcoin, Litecoin (LTC), and XRP wallets were unaffected, it has not yet disclosed the specifics of the exploit or the exact amount stolen. Stake, however, reassured its users that their funds remain secure.
Three hours ago, unauthorised 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.
BTC, LTC, XRP, EOS, TRX + all other wallets remain fully operational.
— Stake.com (@Stake) September 4, 2023
Blockchain security firm Beosin estimated the total loss resulting from the hack to be approximately $41.35 million. This figure includes losses of $15.7 million on Ethereum (ETH), $7.8 million on Polygon (MATIC), and an additional $17.8 million from the Binance Smart Chain.
An initial estimate by another blockchain security firm, PeckShield, had only accounted for the $15.7 million lost on Ethereum. However, this did not factor in the additional $25.6 million allegedly taken from the Binance Smart Chain and Polygon, as reported by on-chain analyst ZachXBT.
The attack unfolded in stages, beginning with a transaction at 12:48 pm UTC, which transferred approximately $3.9 million worth of the stablecoin Tether (USDT) from Stake to the attacker’s account. Subsequent transactions saw over 6,000 Ether, valued at roughly $9.8 million at current prices, being moved out.
The attacker continued to drain the wallet over the following minutes, siphoning off approximately $1 million in USD Coin (USDC), $900,000 worth of Dai (DAI), and 333 Stake Classic (STAKE) tokens, equivalent to around $75. This series of transactions is believed to account for the initial $15.7 million loss on the Ethereum network.
