Stake Reopens Withdrawals After $41M Exploit

Stake, a Crypto Betting Platform, resumes services within 5 hours of a major hack resulting in a $41.3 million loss.

Sep 5, 2023 - 01:20
Oct 19, 2023 - 14:03
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Stake Reopens Withdrawals After $41M Exploit
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Stake, a Crypto Betting Platform, quickly resumed its services, including deposits and withdrawals, just five hours after experiencing a major hack resulting in an estimated loss of $41.3 million, as reported by blockchain security firm PeckShield and on-chain analyst ZachXBT

The platform confirmed that all services were back online by 9:28 pm UTC on September 4th, shortly after acknowledging unauthorized transactions on its ETH/BTC hot wallets.

While Stake has not disclosed the root cause of the exploit or the exact amount stolen, it clarified that user funds remained unaffected. Their Bitcoin (BTC), Litecoin (LTC) and XRP wallets remained intact and weren't compromised.

The initial unauthorized transaction occurred at 12:48 pm UTC, transferring approximately $3.9 million worth of Tether (USDT) stablecoin from Stake to the attacker's account. Subsequently, over 6,000 Ethereum, valued at around $9.8 million, was transferred in the following two transactions.

Within minutes, the attacker continued siphoning off additional tokens, including approximately $1 million in USD Coin (USDC) $900,000 worth of DAI, and 333 Stake Classic (STAKE) tokens (equivalent to $75). These combined transactions accounted for the initial $15.7 million loss on the Ethereum Network.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.