More than $40M in suspicious crypto outflows from Stake raise hack fears

Suspicious transactions raised the alarm of blockchain security investigators, tracking millions in crypto assets across three blockchains.

article-image

owlyowl/Roger Utting/Shutterstock, modified by Blockworks

share

Online gambling site Stake, which allows bets to be placed using crypto, has seen millions worth of ether and USDT transferred out of known wallets.

First reported by Web3 security firm Cyvers, the pattern of transfers includes swaps from USDT, a stablecoin, to ether.

Loading Tweet..

According to Etherscan, the transactions occurred between 8:52 am ET and 10:05 am ET. At 10:08 am ET, the site’s official Telegram posted that “[d]eposits & withdrawals on Ethereum & BSC/ERC20 networks are undergoing temporary maintenance.”

Messages to the site’s published press email were returned as undeliverable, and a spokesperson did not return Blockworks request for comment.

However, at 1:16 pm ET, Stake posted a statement saying they were investigating but that “user funds are safe.”

Loading Tweet..

The transfers were considered suspect in particular due to the swapping of USDT to ether (ETH), which cannot be frozen by Tether.

Loading Tweet..

In addition to the Ethereum transfers, on-chain investigators have tracked $17.8 million on BNB Chain and $7.8 million on the Polygon PoS chain.

MetaMask product manager Taylor Monahan characterized the transfers as “quite methodical,” and speculated that Stake suffered a “systems compromise.”

“[I]nitial transactions were sent via the [S]take systems to addresses the hackers controlled,” she said in the ETHSecurity Community on Telegram.

On-chain evidence indicates that a private key belonging to Stake’s wallets was compromised, which Andrey Lazutkin, chief technology officer at wallet developer Tangem, said is happening with increasing frequency.

“The only solution to this problem is to store a private key in a protected environment, where the user will not have access to it himself, and therefore no third parties (hackers, scammers or scam projects) will have access to it either,” Lazutkin told Blockworks.

Stake, a Curacao-based platform which bills itself as a “leading crypto casino,” lets customers bet on sports and online games using bitcoin (BTC), ether (ETH), and dogecoin (DOGE). The platform, launched in 2017, allows betting in other currencies including the US dollar. 

Stake has been the subject of a trademark infringement lawsuit in Australia and a separate $400 million claim against the founders from a former associate.

Updated on Sep. 4, 2023 at 12:58 pm ET with additional context and at 1:20 pm ET with comment from Stake.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

Framework’s Michael Anderson explains what tokens need in order to be successful

article-image

Conferences are pop-up innovation clusters—and filters for the riff-raff

article-image

Tariff front-running may have caused an artificial bounce in economic data earlier this year

article-image

Waka Flocka Flame-linked BaseDrop is raising some eyebrows

article-image

IPO’ing onchain, Ethereum scaling, and using AI for ZK

article-image

A Brexit-themed celebration of Bitcoin’s catchphrases