When FTX collapsed, Stake came out with a statement saying they are in the business of letting users play with their own money but they themselves will never play with user deposits. On the 4th of September 2023, Stake was hacked for $40m. This is giving us a way to test their words for real.
According to Stake’s tweet on the very same day “user funds are safe”. So far no user has lost any funds because of this incident. At most, some deposits and withdrawals were delayed by several hours.
Is it safe to use Stake now?
Yes, in our opinion the site is 100% safe. You can sign up here and get $1/day for the next 7 days from Stake!
Stake has resolved this issue pretty quickly, providing enough liquidity to make everything back to normal.
According fo the FBI, who was involved in this case, a group named Lazarus was behind the hack, but no there isn’t enough data out there to justify it. However, the fact the FBI was involved shows how even the US government cares about such incidents.
Why Stake was hacked for $40m?
They used hot wallets. Hot wallets are wallets storing crypto online, unlike cold wallets where crypto is stored offline and is safer this way.
Stake has to use hot wallets to a certain extent because they need to process deposits/withdrawals, and such actions are processed via APIs or other similar ways which require the funds to be available in hot wallets.
This incident however is showing us how some businesses can remain reselient despite suffering from such an attack. Stake might also have insurance against such incidents, so in the end of the day they surely have lost money but it might not be $40 million.