In a staggering breach, Stake, the Australian-based crypto gambling platform, has reportedly lost over $40 million due to a cyberattack, putting its vast user base and affiliated streaming partners on alert.
Details of the Breach
On September 4, 2023, Stake experienced a series of suspicious transactions, initially causing a loss of $16 million from its blockchain wallets, as reported by CoinDesk.
However, deeper investigations by blockchain experts Cyvers Alerts and ZachXBT revealed an even grimmer picture: another series of transactions saw a depletion of over $25 million in BSC and Polygon tokens from Stake’s reserves.
Following the detection of the unauthorized transactions, Stake promptly suspended all deposits and withdrawals to presumably stem any further unauthorized activities and trace the wallets holding the stolen funds.
Stake’s Growing Influence
Stake’s rapid rise to fame can be attributed to its association with Twitch streamers. Over the years, its sponsorship of various Twitch personalities brought the platform both immense popularity and subsequent controversy, given the nature of gambling promotions on a platform accessed by diverse age groups.
Further escalating its influence in the streaming world, several Stake owners have recently embarked on creating “Kick,” a rival streaming platform. This new venture attracted significant names from the streaming community, including Trainwreck and Adin Ross.
The prevailing uncertainty has left users wondering about the potential impact of this breach on Kick’s payouts. As of now, it remains unclear whether the suspension of withdrawals will extend solely to Stake’s platform or if it will have repercussions for Kick’s user base as well.