Hacked Largest Crypto Betting Platform Worth $40 Million

The popular crypto betting platform Stake has been hacked, with losses estimated at around $40 million, according to blockchain security experts.

The gambling company, which has received investment from rapper Drake, experienced several unusual transactions on Monday, with approximately $16 million in Ethereum, USDT, USDC, and DAI leaving the platform, as first reported by the security firm Web3 Cyvers on Twitter. An additional $25 million was drained on the Binance Smart Chain and Polygon, according to pseudonymous crypto detective ZachXBT.

Blockchain security firm Peckshield stated that the transactions appeared ‘suspicious’ if the platform was not undergoing maintenance. A few hours later, Stake confirmed that the wallet transfers were ‘unauthorized’, meaning someone gained access to the company’s wallet and transferred funds.

– Unauthorized transactions were executed from Stake’s hot wallets ETH/BSC three hours ago. We are investigating and will raise the wallets as soon as they are fully secured. User funds are safe – the company tweeted.

Stake’s founder and billionaire Ed Craven tweeted that Stake keeps a small portion of its crypto reserves in hot wallets at any time for these reasons and that all affected wallets should soon be operational.

Cyvers tweeted the address that received the crypto. It noted that the stablecoins that left Stake were then converted into Ethereum.

MetaMask Lead Product Manager and security expert Taylor Monahan highlighted on Twitter that the hackers appear to be quite methodical, posting a visual transfer of wallets from the suspected hackers so far.

Stake was launched in 2017 by Australian billionaire Ed Craven. It is supported by numerous celebrities, most notably Drake. The rapper signed a $100 million annual endorsement deal with Stake in 2022, according to the Financial Times.

The media reported gaming revenues of $2.6 billion last year, citing the company’s accounts, making Stake one of the largest gambling companies in the world.