Stake Casino $41M breach, Visa eyes stablecoins, MetaMask adds cash-out feature, Connext airdrop exploited and El Salvador teaches Bitcoin in schools.
Stake Casino Hot Wallets Exploited for $41 Million

Stake Casino Hot Wallets Exploited for $41 Million

Sep 6, 2023
| Issue

Welcome to another issue of the Datawallet newsletter, your trusted daily companion for crypto news. Today's dispatch covers the following stories:

Stake Casino hot wallets exploited for $41 million

In a recent significant security breach, crypto betting giant Stake faced a substantial breach recently, with hackers illicitly withdrawing $41 million from its hot wallets. Despite widespread speculation about a potential private key compromise, Stake's co-founder, Edward Craven, attributed the breach to a sophisticated attack targeting a transaction authorization service. Craven affirmed that the breach, though significant, hasn't materially affected Stake's daily operations, and the platform is back running as before.

In contrast to Craven's statement, several blockchain security analysts argue that a private key leak seems the most logical explanation for the unauthorized transactions that primarily centered on the Ethereum, Polygon, and BNB Chain blockchains. The discrepancy between Craven's account and expert analyses points to an ongoing investigation into the incident's finer details, involving substantial amounts in Ether, stablecoins, and other tokens.

Despite the significant loss, Stake, boasting a revenue of $2.6 billion last year, quickly rebounded, reinstating its operations shortly after the incident. The event highlights the pressing need for heightened security mechanisms within the crypto sphere, with Stake vowing for reinforced safety measures to thwart similar occurrences in the future.

Visa announces they are introducing more crypto products

Visa, the payments giant, announced today that it is broadening its efforts in the cryptocurrency space. This time, Visa plans to utilize stablecoin USD Coin (USDC) and the Solana blockchain. In collaboration with merchants, Visa aims to facilitate transactions worth millions of dollars using USDC. CoinGecko reports that USDC currently holds the sixth position among digital assets, with a market capitalization of $26 billion as of Tuesday. Additionally, Solana's native token SOL experienced a 4% increase following this news.

MetaMask users can now convert crypto to cash

MetaMask, the leading hot wallet in the world, has recently revealed that its users have the ability to convert cryptocurrency into fiat and transfer the funds directly to their bank accounts. In order to make this announcement, MetaMask utilized X (previously known as Twitter). According to a recent report, MetaMask is currently ranked as the most widely used crypto wallet. The company shared on social media that their new feature called "Sell" allows individuals to effortlessly convert their digital assets into traditional currency and securely transfer it directly to their personal bank account.

Connext Network airdrop attacked 

The Connext Network, a protocol that interacts with native blockchain bridges to enhance security, is currently under intense scrutiny due to an incident involving the exploitation of its native token airdrop through a sybil attack

Specifically, it has been discovered that a wallet was created just four hours prior to the launch of the NEXT token's airdrop and managed to manipulate the system by claiming over 200 tokens for itself using multiple wallets. It should be noted that the rules for this particular airdrop limited each wallet to only one claim. This deceptive tactic, commonly referred to as a sybil attack, entails creating numerous eligible wallets solely for claiming purposes and subsequently selling off these acquired tokens for personal gain.

El Salvador to introduce BTC education in schools

The El Salvador Ministry of Education has joined forces with the non-profit organization called Mi Primer Bitcoin (MPB), which translates to "My First Bitcoin," in an initiative to incorporate Bitcoin education into the curriculum of public schools by 2024.

John Dennehy, the founder of MPB, has confirmed to Cointelegraph that this project is being led by the Ministry of Education and that MPB is providing assistance alongside Bitcoin Beach.

Other breaking news

  • LST-backed stablecoin project Raft launches V2
  • The Starknet community proposes a decentralized Starknet protocol
  • Gnosis Pay launched the Gnosis Card (Visa debit card) in Europe
  • Yuga Labs dropped its first bitcoin ordinal collection
  • Uniswap whale moves $3 million worth of UNI 

Wrapping up

In today's Datawallet Newsletter, we explored the high-stakes world of cryptocurrency, highlighting both trailblazing innovations and emerging security concerns. As Visa ventures deeper into crypto initiatives and El Salvador pioneers Bitcoin education, the industry vibrates with dynamic shifts and opportunities. Join us again as we continue to navigate the complex, yet exhilarating world of crypto, offering you the insights you need in a rapidly evolving landscape.