Becoming a Hacking Target, Stake.com Loses IDR 608 Billion in ETH and Stablecoins

Stake.com experienced hacking. (Photo; Doc. Terforex)

JAKARTA - In a recent announcement on the Twitter platform, security company Cyvers revealed that their artificial intelligence (AI) system had successfully detected a series of suspicious transactions related to the Ethereum network and involving the well-known betting platform, namely Stake.com.

Although Cyvers is relatively new to the crypto security field, the validity of their findings has been verified by Peckshield, a well-known security company in the industry.

Stake.com, as one of the big names in the online gambling and crypto casino ecosystem, is in the spotlight in this news. They have attracted attention by announcing a contract worth 100 million US dollars (IDR 1.5 trillion) per year for a partnership with famous hip-hop music star, Drake. Apart from that, they are also the official sponsor of the Premier League football club, Everton, and the F1 racing team, Alpha Romeo.

However, Stake.com had to experience less encouraging news. This is because the company suffered huge losses due to hacking. According to a report released by Cyvers, the resulting losses reached around 15 million US dollars (IDR 228 billion), involving the crypto assets Ethereum, USDC, and USDT. The security report also notes that all stablecoins involved were first swapped to Ethereum and then transferred to multiple external accounts (EOAs).

It is important to note that while Cyvers' AI was successful in detecting these suspicious transactions on the Ethereum network, they were unable to track the large number of assets from other networks including on Polygon and Binance Smart Chain (BSC) associated with the exploit. Cyvers and other on-chain analytics firms assess the majority of the wallets involved as having been identified as belonging to Stake players.

Crypto transaction researcher Zachxbt stated that the hackers managed to steal more than USD 25 million (IDR 380 billion) on the Binance Smart Chain (BSC) and Polygon networks. When combined with Cyvers' previous report, the total losses suffered by Stake.com as a result of this exploitation reached more than 40 million US dollars (IDR 609 billion) from various networks.

Simultaneously, concerns regarding crypto security are increasing as hacking activities have become more massive since the second half of 2023. Despite previous reports showing a decrease in losses due to hacks during the first half of this year compared to the previous year, the major hack that took place in the last quarter of 2022 made crypto industry is vulnerable to hacking attacks.

As of now, Stake.com has not released any official statement regarding this exploit and the steps they will take to address this situation and return the lost funds to their account holders. Security and surveillance continue to be crucial issues in this rapidly growing crypto industry.