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

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.

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.

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

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.

The 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.

This is a developing story and may be updated.

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