Stake.com Co-founder Responds After $41 Million Hack: Private Key Was Not Compromised

Key Points:

• Stake.com’s $41 million heist rocks the leading crypto betting platform.
• Its co-founder assured users that their funds were secure despite the breach, with no compromise of private keys.
• The platform swiftly recovered and resumed operations, highlighting resilience in the face of the attack.

In a recent security breach on September 4, crypto’s leading online casino and sports betting platform, Stake.com, faced a hacking attack resulting in losses amounting to approximately $41.3 million.

Despite the considerable sum, Stake.com promptly assured its users that their funds remained secure, swiftly restoring all services after the incident.

According to DL News, Edward Craven, co-founder of the company, confirmed the attack but emphasized that the platform’s private keys, which control access to crypto wallets, remained uncompromised.

Instead, Craven described the breach as a “sophisticated attack” targeting a service used to authorize transactions on the Ethereum, Polygon, and BNB Chain blockchains.

The unauthorized transactions from hot wallets included $16 million in Ether, along with stablecoins such as USDT, USDC, and DAI, followed by $25 million in withdrawals of MATIC and BNB tokens.

Despite this substantial financial impact, Craven asserted that Stake.com’s operations were largely unaffected and had swiftly returned to normal.

Stake.com temporarily suspended deposits and withdrawals post-attack but swiftly reinstated these functions. Observers noted that the stolen funds, while significant, represented a small fraction of the company’s revenue, which surpassed $2.6 billion last year.

Stake.com’s rapid growth and profitability can be attributed to its leadership, including co-founder Ed Craven, one of the world’s youngest self-made billionaires.

Craven and co-founder Bijan Tehrani established Stake.com in 2017, offering a platform for online casino games and sports betting using cryptocurrencies like Bitcoin, Ethereum, Dogecoin, Litecoin, and Bitcoin Cash.

Despite the setback, the platform’s commitment to user security and resilience in the face of challenges reaffirms its position in the crypto betting landscape.

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