A prominent cryptocurrency casino operating on the Ethereum (ETH) blockchain has suspended withdrawal services following an alleged security breach resulting in a reported loss of $40 million. The incident initially came to light when suspicious transactions were detected by Cyber Alerts, a real-time securities company, as funds were observed leaving Stake.com's Ethereum wallets and being transferred to undisclosed destinations.

Their AI-driven system had detected multiple suspicious transactions associated with Stake.

According to information from the source TechnicalRoundup/X, a substantial amount, roughly $16 million in ETH, USDC, USDT, and DAI, has been transferred to the address 0x3130662aece32f05753d00a7b95c0444150bcd3c. These stablecoins were subsequently converted to ETH and distributed among various externally owned accounts (EOAs).

Stake.com is a cryptocurrency-based betting platform that allows users to place bets on various games and sports events.

The Ethereum blockchain explorer, Etherscan, has identified the address involved in this security breach, which has been actively making multiple transactions in the past hour, as "Stake.com Hacker."

Blockchain security firm Peckshield has also issued an alert to its 78,000 followers on the social media platform X, advising Stake.com to investigate the matter.

In response to the Peckshield post, widely followed on-chain analyst and blockchain investigator ZachXBT reported that approximately $40 million has been siphoned off across the Ethereum, Polygon (MATIC), and Binance Smart Chain (BSC) networks.

Despite these unauthorized transactions, Stake.com has released a statement assuring users that their funds are secure:

Unauthorized transactions were conducted from Stake's ETH/BSC hot wallets. They are currently investigating the matter and will restore the wallets as soon as they are fully secured. Stake.com disclosed that user funds are safe, and wallets for BTC, LTC, XRP, EOS, TRX, and all others remain fully operational.

Reference

Staff, D.H. (2023) Withdrawals Halted at Stake.com As Crypto Casino Targeted in $40,000,000 Hack: Report, The Daily Hodl. Available at: https://dailyhodl.com/2023/09/04/withdrawals-halted-at-stake-com-as-crypto-casino-targeted-in-40000000-hack-report/ (Accessed: 5 September 2023).

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