Crypto Gambling Site Stake Hit by $16 Million Withdrawal Scam

The crypto gambling site Stake encountered $16 million in withdrawals on September 4, which the security platform Cyvers Alerts deemed “suspicious transactions.

The withdrawing account has been labeled “Stake.com Hacker” by Etherscan, indicating that the drained assets may be the result of a stolen private key.

Blockchain data reveals very large withdrawals from Stake.com contracts into the alleged attacker’s account. The first transaction took place at 12:48 p.m. and involved the transfer of approximately $3.9 million worth of Tether from Stake to the attacker’s account.

The subsequent two transactions removed 6,001 ethereum, valued at approximately $9.8 million at the present exchange rate. In the following minutes, the perpetrator continued to remove tokens, including approximately $1 million in USD Coin, $900,000 in Dai, and $75.48 worth of 333 Stake Classic (STAKE) tokens.

Cyvers estimated that the stolen cryptocurrency was worth $16 million in total. After depleting the funds, the suspect allegedly disbursed them across multiple accounts.

Stake has not stated the suspicious withdrawals as of the time of publication. Stake is a cryptocurrency-based gambling protocol that offers dice games, blackjack, lingo, and other casino games, as well as sports wagering for basketball, tennis, volleyball, and others.

This is not the first time in 2023 that hackers may have targeted crypto wagering sites. Alphapo, a provider of payment services, experienced $31 million in suspicious withdrawals on July 23.

Alphapo was a service provider for several crypto-gambling websites, including Hypedrop, Bovada, and Ignition.