- Stake, a crypto-based betting platform, fell victim to a security exploit resulting in over $15 million in suspicious outflows, including 6,000 ether and $5.9 million in stablecoins.
- The platform has temporarily halted deposits and withdrawals following the incident, but an official statement from Stake is still pending.
In a shocking revelation that has sent shockwaves throughout the cryptocurrency community, the crypto-based betting platform Stake appears to have fallen victim to a security breach resulting in suspicious outflows exceeding $15 million.
Analysts examining the blockchain have identified numerous irregular transactions originating from the platform, sparking concerns about potential security vulnerabilities within Stake’s wallet.
In the recent hours, the wallet received several transfers, notably a single transaction involving 6,000 ETH. These transactions encompassed a variety of cryptocurrencies, including 6,000 DAI, 3.9 million USDT, 900,000 DAI, and 1.1 million USDC.
Renowned blockchain investigator ZachXBT corroborated these findings, confirming that approximately $15.7 million had been drained from the Ethereum network, and an additional $25.6 million had been lost across both the Polygon and Binance Smart Chain networks.
Cyvers, the initial reporter of the incident, promptly alerted blockchain security and data analytics firm Peckshield, as well as the prominent on-chain investigator ZachXBT, to undertake further investigations.
Subsequently, ZachXBT’s investigation uncovered an additional loss of $25.6 million across both the Binance Smart Chain and Polygon networks.
Tommy WorldPower, CEO of the Ethereum L1 blockchain, Energi, observed that approximately $2 million worth of assets remained in Stake’s wallet at the time of the report.
Etherscan data reveals that the targeted Stake wallet still retains $340,000 worth of ETH and approximately $2.1 million in various alternative cryptocurrencies. Although Stake has not issued an official statement regarding the situation, the platform has reportedly temporarily halted both deposits and withdrawals, leaving its users in a state of uncertainty.
This recent development coincides with a civil lawsuit filed against Stake.com by its former partner, Christopher Freeman, in the Southern District of New York.
According to the legal filing, Freeman claims that he was misled into distancing himself from the inception of Stake.com and is now pursuing a lawsuit seeking $400 million in punitive damages. Additionally, he is seeking compensation for his initial investment in a company called Primedice, which played a pivotal role as a precursor to the establishment of Stake.com.
Established in 2017, Stake.com rapidly rose to prominence as the largest online casino in the industry. The platform primarily focuses on sports betting and a variety of casino games, including popular options like blackjack, roulette, and slot machines.
Notably, Stake differentiates itself by exclusively utilizing cryptocurrencies for all transactions, eschewing traditional fiat currencies. It supports a total of 18 cryptocurrencies, encompassing major names such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Tether (USDT), USD Coin (USDC), and ApeCoin (APE), among others.