Over $31 million stolen from Alphapo hot wallets after hacking

**Cryptocurrency Payment Platform Alphapo Loses Millions in Hack**

Alphapo, a crypto payment platform, has fallen victim to a major hack resulting in the loss of at least $31 million from its hot wallets. The attack targeted Ethereum (ETH), TRON (TRX), and Bitcoin (BTC), with the possibility of even higher figures when accounting for the uncertain number of stolen Bitcoins. Security experts have confirmed the theft, and investigations are underway to determine the exact details of the incident.

**Stolen Funds Swapped and Bridged Across Blockchains**

According to ZachXBT, an on-chain sleuth, the stolen funds were initially taken from the Ethereum network and then swapped for ETH before being bridged to the Avalanche and Bitcoin blockchains. This suggests a sophisticated and coordinated attack aimed at obfuscating the flow of funds. The hack may have been facilitated by a leak of private keys, as suggested by DeDotFi’s security team.

**Alphapo as a Payment Processor and Crypto Gateway**

Alphapo is a prominent payment processor that offers instant transactions for over 30 digital assets and supports balances in various fiat currencies. The company is well-known for serving as the crypto gateway for multiple gambling platforms, including HypeDrop, Ignition, and Bovada. This role positions Alphapo as a crucial link between the traditional gambling industry and the world of cryptocurrencies.

**Impact of the Hack on HypeDrop**

Following the hack, HypeDrop, a client of Alphapo, has temporarily halted processing crypto transactions. The popular Mystery box platform disclosed that it is experiencing issues with deposits and withdrawals due to the incident. However, HypeDrop assured its users that their funds are safe and stated that once the provider’s operations resume, deposits will be credited accordingly.

**Alphapo Restores Deposits and Withdrawals in Batches**

Despite not providing detailed comments on the hack, a spokesperson for Alphapo confirmed to Cointelegraph that the company is gradually reinstating deposits and withdrawals for different currencies in batches. Users are advised not to send funds to old deposit addresses, and any funds originating from such deposits will undergo additional scrutiny to ensure their validity and legitimacy.

**Another Attack in the DeFi Space**

In a separate security incident within the decentralized finance (DeFi) sector, the Conic Finance protocol recently faced two attacks within a few hours. The initial exploit resulted in the theft of $3.26 million in Ether, with the majority sent to a single Ethereum address in one transaction. Shortly after, a second attack occurred, known as a sandwich attack, targeting Conic Finance’s pools and resulting in the attacker acquiring around $300,000.

**Protecting Crypto Projects from Hacks: Ethical Considerations**

The prevalence of hacks within the crypto space raises an important question: should crypto projects ever negotiate with hackers? This issue is explored in-depth in the article “Ethics 101: Crypto Projects Negotiate with Hackers?” It discusses the ethical implications and potential consequences of engaging with hackers in an attempt to mitigate the damage caused by an attack.

In conclusion, Alphapo’s recent hack is yet another unfortunate incident in the cryptocurrency industry, highlighting the ongoing need for robust security measures. As the popularity and adoption of digital assets continue to grow, it is crucial for companies and users alike to stay vigilant and prioritize the protection of their funds.

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