Crypto-based betting platform Stake.com resumes operations after suspicious fund movements

Unusual financial activities have been observed on the cryptocurrency-based sports betting and casino platform Stake. The incident came to light through a report from the Cyvers platform, which revealed that about $16 million worth of stablecoins had been converted into Ethereum (ETH). Stake.com has now returned to normal service following the incident.

Subsequently, on-chain investigator ZachXBT corroborated this, noting that an additional $25.6 million had been withdrawn from Stake, utilizing the Binance Smart Chain (BSC) and Polygon (MATIC). The combined total stands at $41 million, reports CryptoSlate.

In a post on X, Stake.com said that unauthorized transfers were made from a number of its hot wallets. However, it added that user funds were safe. Stake.com also said the incident only impacted the named wallets, with other wallets such as Bitcoin, Litecoin and XRP remaining fully operational throughout.

Following an investigation, Stake.com confirmed its services were back to normal. “All services have resumed,” Stake.com said. “Deposits and withdrawals are processing instantly for all currencies. We apologize for any inconvenience.” However, the platform did not disclose any further details about the incident.

This is not the first instance of a cryptocurrency gambling platform facing such security concerns. Earlier this year, Alphapo, a cryptocurrency payment service provider utilized by gambling platforms like HypeDrop and Bovada, experienced a significant security breach resulting in losses exceeding $60 million. The FBI subsequently attributed this breach to state hackers backed by North Korea.

Cryptocurrency researcher Tayvano, in response to this recent exploit, cautioned against prematurely linking it to North Korea due to the limited transaction data available. Tayvano stressed that the most reliable indicators would likely emerge from Stake.com itself, such as any unusual behavior exhibited by their developers, such as applying for high-paying positions in the cryptocurrency industry.