Stake.com Crypto Casino Hacked for $41 Million
Stake.com is one of the largest crypto casinos in the world, with a focus for the site being on celebrity partnerships and exclusive sponsorships.
As a fully integrated crypto casino, users expect fast and simple deposits and withdrawals. However, not even associations with Drake or Alfa Romeo could shield the site from a recent hack.
On the 4th of September, Stake posted on their X account that unauthorised transactions were made from the site’s hot wallets. The site stated that all wallets were secured and that user funds were safe.
Three hours ago, unauthorised tx’s were made from Stake’s ETH/BSC hot wallets.— Stake.com (@Stake) September 4, 2023
We are investigating and will get the wallets up as soon as they’re completely re-secured.
User funds are safe.
BTC, LTC, XRP, EOS, TRX + all other wallets remain fully operational.
While dealing with the hack, all deposits and withdrawals were suspended. This meant that players couldn’t access their funds, but no further attacks were experienced at this time.
Stake didn’t share what was lost, but Cyvers, a trusted crypto security firm, flagged many different transactions that were linked to the casino’s hot wallet.
The stolen funds totalled $41.35 million. As much as $17.8 million was taken from Stake’s Binance Smart Chain wallet, $15.7 million was withdrawn from their Ethereum wallet, and $7.8 million was taken from Polygon.
Thankfully, not long after the hack took place, Stake shared that all services had resumed and that deposits and withdrawals were back up and running.
While players were concerned that their accounts and funds would be compromised, Stake showed once again why they are industry leaders. Super fast turnaround time, clear communication, and having safety nets in place made the hack less devastating.
Ed Craven, the co-founder of both Stake and Kick Streaming, commented on one of the X posts that they were covered for cases like this by keeping “a small portion of its crypto reserves in hot wallets at any given moment”.
Stake keeps a small portion of its crypto reserves in hot wallets at any given moment for these very reasons.— Eddie (@StakeEddie) September 4, 2023
All affected wallets should be operational shortly 💚
For most, $41 million may not sound like a “small portion” of funds. However, Dune.com has disclosed that more than $2.1 billion in customer deposits have taken place at the casino since August of 2022.
How To Keep Your Crypto Wallet Safe
As the crypto market grows and evolves daily, it’s important that you know how to keep your funds and your wallet as safe as possible. Here are a few handy tips to keep in mind.
1. Always Use a Secure Platform
Before choosing which crypto wallet to use, do your research. Not all platforms can be trusted, and you should only use one that offers the very best safety features. Learn all about the platform’s history, security measures, and potential issues before you sign up.
2. Lock Down Your Password
Passwords should always be strong, and the code to your crypto wallet should be no different. Avoid common phrases or words, and steer clear of using your birth date. Instead, use a completely random mix of letters, numbers, and special characters. Be sure to store this password safely so that it’s not forgotten.
3. Enable Two-Factor Authentication
Whenever a banking or crypto platform offers two-factor authentication, enable it. It’s always a plus and can be the simple protection you need against being hacked. Two-factor authentication means that when you log in to your account, you’ll either need to provide a code from an authentication app or a password via text or email.
4. Use a Hardware Wallet To Store Your Keys
The ultimate form of protection is to use an offline hardware wallet to store your private keys. These devices are perfect for keeping your information safe, even if your computer is hacked or wiped by a virus. You can store this device in a safe or with your bank for extra safety.
5. Use Multiple Crypto Wallets
You are welcome to use as many crypto wallets as you please. In fact, you can split your funds between as many crypto wallets as you like, but remember that each one will have its own password and private keys to keep track of, so be sure not to misplace or forget those important details.
6. Avoid Public Wi-Fi
It’s a golden rule that public Wi-Fi connections should never be used for anything important. Especially banking or when accessing your crypto wallets. These connections are accessed by thousands of people and are vulnerable to hacks, viruses, and much more. Only access your accounts and wallets when you’re at home or using a Wi-Fi connection that you trust.
What is a hot wallet vs a cold wallet?
A hot wallet is connected to the web and is used to store and exchange crypto when you need it. Cold wallets are completely offline and are physical devices that protect your crypto by keeping it away from the internet in any way.
Why can’t crypto transactions be reversed like a bank charge?
Crypto transactions are built on decentralised technology. When a transaction is confirmed, it is added to the blockchain and confirmed by participants on the network and miners. These participants validate the transaction data. It is then secured and permanently recorded on the blockchain. Reversing or changing it is impossible.
How do crypto hacks happen if the blockchain is so secure?
While blockchain technology is some of the most secure, it’s not perfect, and hacks can take place in very specific ways. The exploitation of blockchain code, stolen customer keys, and hacking a physical computer with important codes can all lead to stolen crypto.
What happens if I lose my private keys?
If you lose your private keys, you will lose all access to your crypto funds. It’s for this reason that you need to make multiple backups of these keys and store them in physical places. Whether this is on a cold wallet or written down and stored with your bank, you need to ensure that you never lose your private keys entirely.