Stake.com Hot wallet robbed for 40Million + usd (Confirmed by stake)

[Mahdirakib]

Biggest robbery from a crypto casino so far?

probably yes

It could be the biggest robbery in the crypto gambling industry (based on the occurred time and crypto price). However, a user had cheated on Primedice and made 2,400+ Bitcoin profit on 2014. It was worth $1 million during the, which is worth $62 million for the current price of Bitcoin: Hufflepuff Making 2k BTC On PrimeDice Nov 2014. March 2015 Update: He Cheated

Stake is the sister site of Primedice. As a billion dollar casino now, the $41 million loss won't be a big deal for Stake. Although the news isn't positive, but Stake.com will have some marketing for the news, articles and tweets of the hacking story.

[ajiz138]

Saddened by this news! But with this incident they are still operating normally as if they were hacked and nothing happened. 

We know stake is a big casino.

does this mean 41 million is like pocket change to them?

Eddie said a small percentage keep reserves in hot wallets, so this might be pocket change for them, he said the affected wallets will be operational soon.

[1] https://twitter.com/StakeEddie/status/1698748627622244840

[nelson4lov]

Although Stake team confirmed no user funds were lost (i'm sure they would likely reimburse it)

Users don't have a direct claim on wallets, so unless they can't afford to pay everyone, it makes sense that no user funds were lost.

Well, It's a good thing that it is stake and they will probably cover the loss. Otherwise, user funds would indeed have been lost even if users have no direct claim on wallets. 

This is similar to how it works for exploited centralized exchanges.

[Accardo]

Although Stake team confirmed no user funds were lost (i'm sure they would likely reimburse it)

Users don't have a direct claim on wallets, so unless they can't afford to pay everyone, it makes sense that no user funds were lost.

The crypto gambling community know how big financially Stake is, and they can reimburse the funds. A $100 million dollar mega deal with Drake is an evidence to the viral belief. On the other hand, it's said to have lead to the attack stake is having recently. Some write-ups about this incident centered on the profits of Stake casino, as a factor to the reason hackers targets the casino.

[livingfree]

While this amount could be like some advertisement money for them, it's still a lot of money that was gotten to them.

How could the hacker was able to gain access to those funds? Could it be that there's some backdoor that was seen through their staff or so?

Again, I've seen some tweets on this recent incident about crypto is a gamble and this is where their money goes, to the hacks. They always trying to flame the incident and make it look like it's a whole thing for the crypto market.

Stake will recover for sure with this incident.

[Nwada001]

I think they are active in action, and according to their statement that no user funds were affected, it might mean that they have a separate wallet for user deposits and also a separate wallet for withdrawals.

A user in X asked what would happen if he made a deposit to his stake account, and he was replied that it would be credited immediately, which means the deposit part doesn't have an issue and some of the network withdrawals are still completely functional. Let's just hope it's their reserve funds that were affected and not user deposits, as they explained.
 
 

[DaveF]

I guess part of the question is going to be not if they can cover the loss. But, can they cover everyone now if people panic and start pulling their funds out and stop gambling there. Given time and effort, considering their size they should be able to overcome a loss like this. But, if everyone runs, it's going to make it that much harder to do.

Stake takes the slot percentages slider and lowers it all the way and continues business only works if people keep playing.

-Dave

[BoXXoB]

I guess part of the question is going to be not if they can cover the loss. But, can they cover everyone now if people panic and start pulling their funds out and stop gambling there. Given time and effort, considering their size they should be able to overcome a loss like this. But, if everyone runs, it's going to make it that much harder to do.

Stake takes the slot percentages slider and lowers it all the way and continues business only works if people keep playing.

-Dave

I suppose the average player might not bat an eye especially if the site continues normal operation.

The only thing I am concerned is what caused this and whether or not there's something wrong with their security measures. All we know at the time is that it was likely a private key leak and that could happen because of numerous things.

[BitcoinPanther]

I guess part of the question is going to be not if they can cover the loss. But, can they cover everyone now if people panic and start pulling their funds out and stop gambling there. Given time and effort, considering their size they should be able to overcome a loss like this. But, if everyone runs, it's going to make it that much harder to do.

Stake takes the slot percentages slider and lowers it all the way and continues business only works if people keep playing.

-Dave

As long as Stake operation is not suspended and the users are able to deposit and withdraw their fund when the suspension of wallet is lift up, the users fund on their account is unaffected, I believe players will continue to play on stake and this will not give a red flag that make players panic and pull out their funds.  Instead if the Stake platform is able to solve this easily, this case will strengthen the trust of their players.

The only thing I am concerned is what caused this and whether or not there's something wrong with their security measures. All we know at the time is that it was likely a private key leak and that could happen because of numerous things.

I am also curious how does this hack happened.  Is this some glitch on the smart contract implemented on those wallets?

[Saint-loup]

I guess part of the question is going to be not if they can cover the loss. But, can they cover everyone now if people panic and start pulling their funds out and stop gambling there. Given time and effort, considering their size they should be able to overcome a loss like this. But, if everyone runs, it's going to make it that much harder to do.

Stake takes the slot percentages slider and lowers it all the way and continues business only works if people keep playing.

-Dave

Yes most people above seem to try to avoid to talk about the consequences. But I think it is very likely that most of their customers will try to withdraw their funds in the coming days and will only leave the minimum for playing there, if they don't go elsewhere. So if Stake has not a large bankroll from their own capital they won't be able to pay the winnings and the bonuses to their customers.

[decodx]

Just my opinion, but it seems logical that they would officially state that user funds are safe after the hack. However, let's consider the practical reality. All deposits made to a Stake deposit address go directly to their wallet. So, when their wallet is compromised, are those funds considered Stake's or the users'?

Of course, Stake does keep records in their database of each user's account balance. But here's a thought: what if everyone tried to withdraw all their funds at once? Would Stake have enough of what we consider 'their' funds to cover all the withdrawals?

I believe their best course of action is to continue with their business and gradually recover from the losses. After all, it's a casino, and in the long run, most users tend to lose their deposits anyway.

[PX-Z]

Eddie said a small percentage keep reserves in hot wallets, so this might be pocket change for them, he said the affected wallets will be operational soon.

[1] https://twitter.com/StakeEddie/status/1698748627622244840

Good thing if it's the case, in fact Stake is really a huge casino ever existed here in crypto space. If this is just a new or smaller casino, those users with large sum of balance will be very affected and in rage if they file bankruptcy. And I'm sure those hacked USDT and other USD pegged coins will be frozen and hopefully will be recovered.

[robelneo]

Well, It's a good thing that it is stake and they will probably cover the loss. Otherwise, user funds would indeed have been lost even if users have no direct claim on wallets. 

This is similar to how it works for exploited centralized exchanges.

They have to assure their members' confidence they are the industry giant they cannot afford to lose their status in the industry if it happens to a small casino it's likely they cannot keep up paying their members, this is one of the reasons why gamblers should pick a reputable casino and have a good standing in the industry so in case something like this happen their funds are still safe.
What happens will echo in the whole industry and what Stake is going to do will have an impact on the industry hopefully the hackers left a loophole for them to track them.

[Darker45]

They have to assure their members' confidence they are the industry giant they cannot afford to lose their status in the industry if it happens to a small casino it's likely they cannot keep up paying their members, this is one of the reasons why gamblers should pick a reputable casino and have a good standing in the industry so in case something like this happen their funds are still safe.
What happens will echo in the whole industry and what Stake is going to do will have an impact on the industry hopefully the hackers left a loophole for them to track them.

I don't think this would be enough for Stake to lose its respectable status in the crypto gambling industry. It seems that no user is hurt in this incident save perhaps for some negligible inconvenience. However, it wouldn't be surprising either if there are gamblers who would decide to minimize their funds in the platform or even transfer to another one.

Just the same, Stake should be responsible enough to provide transparent details as to what really happened if only to remove from the minds of the users that the platform has some serious security flaws ready to be exploited by anybody.

[AHOYBRAUSE]

They have to assure their members' confidence they are the industry giant they cannot afford to lose their status in the industry if it happens to a small casino it's likely they cannot keep up paying their members, this is one of the reasons why gamblers should pick a reputable casino and have a good standing in the industry so in case something like this happen their funds are still safe.
What happens will echo in the whole industry and what Stake is going to do will have an impact on the industry hopefully the hackers left a loophole for them to track them.

I don't think this would be enough for Stake to lose its respectable status in the crypto gambling industry. It seems that no user is hurt in this incident save perhaps for some negligible inconvenience. However, it wouldn't be surprising either if there are gamblers who would decide to minimize their funds in the platform or even transfer to another one.

Just the same, Stake should be responsible enough to provide transparent details as to what really happened if only to remove from the minds of the users that the platform has some serious security flaws ready to be exploited by anybody.

Actually they never share anything like this with the public.
Last year they were hacked as well and some user data such as emails, VIP level were stolen.
They didn't even bother to inform players.

People found out when they suddenly got promotion emails from sites that bought the stolen data, such as rollbit.

[adaseb]

Most users probably won’t be that upset since it was a hot wallet which got hacked and those are already risky. If they lost their cold store wallets which was a majority of the user funds then people would be upset and start withdrawing their funds as soon as possible.

Can’t think of the last time a casino got hacked. I remember there was that HuffPuff cheater on Primedice who could read the seeds ahead of time and made off with like 2K BTC or something similar.

[o_e_l_e_o]

Of course they are going to say "User funds are safe". If they came out and said "Uhhh, we no longer have enough money to pay everyone back", then they trigger a bank run which rapidly leads to insolvency. So whether or not users funds are actually safe, that is what they are going to say.

It's the exact same as when the likes of FTX, BlockFi, Celsius, Voyager, et al. said "Everything is fine" in the days and weeks before going bankrupt. If they are honest then all they do is speed up their own demise.

And for all the coins stolen on BSC, could Binance not just reverse those transactions since BSC is 100% centralized?

[NotATether]

Actually they never share anything like this with the public.
Last year they were hacked as well and some user data such as emails, VIP level were stolen.
They didn't even bother to inform players.

People found out when they suddenly got promotion emails from sites that bought the stolen data, such as rollbit.

Why are legit casinos buying stolen email addresses in the first place? They are not supposed to be sketchy.

Still, it has to be cleared up: Why were they keeping millions of dollars in a hot wallet in the first place? I generally do not mind withdrawals taking a few hours or a day in order to fill the hot wallet and to double/triple check. This just feels like needless negligence on the part of funds security.

[Igebotz]

And for all the coins stolen on BSC, could Binance not just reverse those transactions since BSC is 100% centralized?

CZ's best bet is to freeze those output addresses and have Stake negotiate with those hackers (Ramson, as usual), since I don't believe it's feasible to reverse already confirmed transactions (which I haven't seen before).

Keeping such a large sum in a hot wallet is a rookie error for an old casino (Stake). It appears to be an insider hack.

[BoXXoB]

Actually they never share anything like this with the public.
Last year they were hacked as well and some user data such as emails, VIP level were stolen.
They didn't even bother to inform players.

People found out when they suddenly got promotion emails from sites that bought the stolen data, such as rollbit.

Is this a fact? Never heard of it and it's quite an alarming lack of transparency if true.

This just feels like needless negligence on the part of funds security.

You can't say it's negligence without knowing what their risk tolerance is. At their scale it may very well be worth it if they have enough volume and it's a deal-breaker for customers who play with large amounts.

I believe that there should be some middle ground with a semi-coldwallet solution with minimal delay but added security. When risking $40 million one could probably protect their funds pretty well with some clever solution and still have fast transactions.