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

[stompix]

Stake made $2.6b in revenue last year so $40m is drop in the ocean for Ed.

2.6 billion in revenue, not profit!
Betfair had 4.8 billion in revenue with a pretax profit of 83 million, so if we keep the same ratios that would be a year running for nothing!

It's completely feasible. There are only a handful of BSC "nodes" (if you can even call them that), and all of them are owned and operated by Binance. Binance can do anything they like with the BSC network and all the assets on it. Reverse transactions, seize coins, burn coins, shut the whole thing down.

This is terrifying; you've just destroyed my affection for the BUSD token and the entire BSC Blockchain. Well, I'm not certain the hackers are stupid enough to leave those coins in the BSC Blockchain knowing they could be reversed or frozen..

Why are you surprised by this?
CZ wanted to do that with Bitcoin when Binance lost money, do you honestly think a control freak like him would really allow a truly decentralized coin with his name on it to be the backbone of his business? I'm pretty sure he would fork it at the first sign he is about to lose total control over it.

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[PX-Z]

They identified the hackers as a known organisation from north korea,
...
I still however am skeptical that this happened without any inside access , also shows how big stake is now that fbi is involved so fast, especially because stake.com does not operate in US and the hackers arent from US either, allegedly.

They have Stake.Us domain for US users since it falls on  the same company, then FBI could handle it but accusing the those org from north korea again for this, i don't think some of it can be recovered especially the non-USD pegged coins that were hacked.

[Igebotz]

Stake made $2.6b in revenue last year so $40m is drop in the ocean for Ed.

2.6 billion in revenue, not profit!
Betfair had 4.8 billion in revenue with a pretax profit of 83 million, so if we keep the same ratios that would be a year running for nothing!

Stake pays Drake $100m a year for endorsements, Everton £10m for shirt sponsorships, and was keen in securing a £40m per shirt deal with Chelsea a few months ago until the deal fell through. Why would a casino with a profit of less than $100m, according to your calculations, be able to carry out such a massive commitment? Not to mention the Adesenya and Aguero deals. Something isn't right

[cryptofrka]

Stake pays Drake $100m a year for endorsements, Everton £10m for shirt sponsorships, and was keen in securing a £40m per shirt deal with Chelsea a few months ago until the deal fell through. Why would a casino with a profit of less than $100m, according to your calculations, be able to carry out such a massive commitment? Not to mention the Adesenya and Aguero deals. Something isn't right

How much you pay for something should never be taken as an estimate on how much your profit is.
If they estimate that they will earn 103 million from 100 million Drake endorsement, they will do it. The fact that they do have 100 mil for an endorsement does not mean that they have cash to throw away, or that their profit is in trillions.

In this example, a 100 mil in capital is used to accrue only 3 mil in profit - and a lot of companies will accept a 3% ROI on such investments.

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Not saying this is the case with Stake, they can of course have incredibly high profits and 50x return on their endorsements. I'm just trying to explain that the fact that they have 100+ mil to 'throw away' does not necessarily mean that 40 mil is pennies for them.
40 mil hurts anybody - it's a huge amount of money.

[Igebotz]

Stake pays Drake $100m a year for endorsements, Everton £10m for shirt sponsorships, and was keen in securing a £40m per shirt deal with Chelsea a few months ago until the deal fell through. Why would a casino with a profit of less than $100m, according to your calculations, be able to carry out such a massive commitment? Not to mention the Adesenya and Aguero deals. Something isn't right

How much you pay for something should never be taken as an estimate on how much your profit is.
If they estimate that they will earn 103 million from 100 million Drake endorsement, they will do it. The fact that they do have 100 mil for an endorsement does not mean that they have cash to throw away, or that their profit is in trillions.

In this example, a 100 mil in capital is used to accrue only 3 mil in profit - and a lot of companies will accept a 3% ROI on such investments.

We're on the same page, and a good business only puts its eggs where they can make a profit. Only new projects invest heavily in marketing, even if they do not earn, in order to promote their brand. Stake is one of the largest crypto casinos, and they aren't putting out millions to achieve popularity (they already have), but to make money. Nobody is claiming that the money they lost is little, but it is not the kind of money that will keep them out of business for even an hour.

[LoyceMobile]

2.6 billion in revenue, not profit!
Betfair had 4.8 billion in revenue with a pretax profit of 83 million, so if we keep the same ratios that would be a year running for nothing!

Isn't the profit part the part they want to keep as low as possible for tax reasons, even when the revenue is very high? Only 2% of the revenue as profit is a lot less than I would have expected.

[stompix]

Stake pays Drake $100m a year for endorsements, Everton £10m for shirt sponsorships, and was keen in securing a £40m per shirt deal with Chelsea a few months ago until the deal fell through. Why would a casino with a profit of less than $100m, according to your calculations, be able to carry out such a massive commitment? Not to mention the Adesenya and Aguero deals. Something isn't right

One doesn't exclude the other.
Even large companies usually spend more on advertising than they have profit, and this goes to the extreme when your whole business is dependent on bringing and keeping players. Just for fun, if we compare with Procter & Gamble which doesn't have to fight that seriously to keep people from using their shampoo, right? , lol, we're looking at 8 billion in advertising at an annual revenue of 80 billion, probably taking somewhere at 20% as most digital brands do that would make a 400 million budget realistic.

Maybe Stake would be doing better but you do realize that if Stake would be making more money than the rest it would mean people would be earning less and lose more which wouldn't really make it as attractive as it is now, right?

Isn't the profit part the part they want to keep as low as possible for tax reasons, even when the revenue is very high? Only 2% of the revenue as profit is a lot less than I would have expected.

Profit before tax, this is where the accounting tricks begin, as you can't really fake the previous numbers when your whole business is online and in Betfair's case you only take digital centralized payments, with crypto you can shuffle a bit but with a card and wire transfers is just a no go. The margin is nearly the same for everyone bet365 is at 60million in profits at 3.5 billion in revenue.

[rdbase]

Seems that the owner Eddie had made a statement about what had transpired during the recent events of the hack of those wallets and had indeed confirmed it was the hackers Lazarus Group from North Korea who were traced by the FBI:
"Despite a sophisticated attack on Stake by North Korean cyber actors (As confirmed by the FBI), operations are completely unaffected. Thank you to the talented & resilient team. I've shared more information in my recent Medium post."
source: https://twitter.com/StakeEddie/status/1700062420813922760

It is all in described in detail on this interview from a post on medium a couple of days ago
https://medium.com/@edcraven22/always-moving-forward-reflections-on-the-recent-stake-com-exploit-431105710a2e

[rohang]

Today stake released premonthly for every VIP user.

I was  VERY surprised when  i saw  it, since its easily few million dollars for them that they dont need  to give to users, especially after double monthly bonus in august due  to their birthday.

This just proves that stake is  undisputed #1  right  now atleast based on revenue/profits.

They can still afford to give these  bonuses to users inspite of losing 40+ million, I  have no doubt most other sportsbooks would shut down or try to recoup  their losses by cutting back on promotions etc

[cafter]

Damn, looks like a hack. If it was an inside transfer, they'd probably confirm it by now, no?

I don't know how much money they're working with on a daily basis, but 40 mil on hot wallets? Looks like way too much.

yes, just see the high rollers on their website, which are wagering in hundred thousands and in millions per bet, so you can imagine how big the stake platform is became now
I am not a developer and know very less about coding or hacking. but stake seems very high security casino it's is hard to believe that they also got hacked.

[KingsDen]

Today stake released premonthly for every VIP user.

I was  VERY surprised when  i saw  it, since its easily few million dollars for them that they dont need  to give to users, especially after double monthly bonus in august due  to their birthday.

This just proves that stake is  undisputed #1  right  now atleast based on revenue/profits.

They can still afford to give these  bonuses to users inspite of losing 40+ million, I  have no doubt most other sportsbooks would shut down or try to recoup  their losses by cutting back on promotions etc

That is one of the many profits people enjoy when they play with a reputable and trusted casino.  If this hack had happened to a relatively new and unpopular casino, it would have been an exit door for them. Even when  they do not want to exit, the pressure from the media and the users will throw them into more problems. But with stake, see how calm the environment remained and I bet you that many people that plays with Stake.com doesn't know that they were hacked. This is because there is no panic or prolonged pause of withdrawal   .This is an example that building reputation is very necessary in the gambling business.

I have read somewhere about stake transactions running in billions, the 40 million lost is something that will not take Stake so long to recover because they are much rooted in the business. But then they should have ways to mitigate such occurrences in the future. In as much as it's not affecting them, hacks depict vulnerability which is not a good thing.