Hackers Steal Over $31 Million From Alphapo Crypto Platform

Jimmy Aki
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Hackers have managed to breach the hot wallets of Alphapo, a crypto payment processor, and made off with crypto assets worth over $31 million.

Alphapo Leaked Private Keys May Have Caused Breach

On July 22, Alphapo, a crypto payment platform, experienced a major security breach that led to the theft of at least $31 million from its hot wallets on the Ethereum network. The stolen tokens included $BTC, $ETH, and $TRON.

According to on-chain investigator ZachXBT, the hacker skillfully exchanged the stolen funds for ETH before transferring them to the Avalanche and Bitcoin blockchains, making it challenging for investigators to trace the transactions.

Blockchain security firm PeckShield confirmed that the stolen funds comprised 6.074 million $USDT, 108,000 $USDC, 100.2 million $FTN, 430,000 $TFL, 2,500 $ETH, and 1,700 $DAI.

All these funds were transferred to the wallet address “0x040a96659fd7118259ebcd547771f6ecb9580d17”.

Additionally, approximately 12 million $USDT and 5.2 million $TRX were sent to “TKSitnfTLVMRbJsF1i2UH5hNUeHLDrXDiY” before eventually being transferred to “TDoNAZHa7WxarUAFbQUhiijTGtd7EpbzRh.”

Due to the uncertain number of stolen $BTC coins, the total theft could reach as high as $100 million.

DeDotFi’s security team has proposed the possibility that the hack could be attributed to the leakage of private keys.

Nonetheless, ongoing investigations are being conducted to ascertain the cause of the breach that led to theft.

Alphapo, known for enabling instant transactions in over 30 digital assets and various fiat currencies, primarily serves as a crypto gateway for several gambling platforms like HypeDrop, Ignition, and Bovada.

Considering the utilization of its service by many major crypto-gambling sites, the hack can have a significant impact.

Following the security breach, HypeDrop, one of Alphapo’s clients, ceased processing crypto transactions and acknowledged the deposit and withdrawal issues on Twitter.

The platform assured users their HypeDrop funds were safe, but pending crypto withdrawals would remain “Pending” until the cryptocurrency provider resolved the issue.

However, an Alphapo spokesperson refrained from commenting on the incident but mentioned that deposits and withdrawals were gradually being reinstated for different currencies.

They also urged users not to send funds to old deposit addresses and assured additional verification for funds resulting from such deposits.

Over $100 million Stolen in July By Hackers

The Web3 space has witnessed a surge in exploits and hacks this month, with hackers having already stolen over $100 million from various blockchain protocols, as reported by DeFillama data.

The most significant breach occurred in the cross-chain protocol, Multichain, resulting in a staggering theft of $126 million.

The suspicious nature of this exploit has led experts to speculate that it might have resulted from either a rug pull or a compromise of the administrator keys.

During this incident, stablecoin issuers Tether and Circle were able to freeze approximately $67 million worth of funds from the exploit.

Furthermore, due to a lack of operational funds and alternative sources of information, the Multichain team decided to halt operations.

In another security incident, the decentralized finance protocol, Conic Finance, experienced two attacks in a short period.

In the first exploit, $3.26 million in $ETH was stolen, with nearly the entire amount sent to a single Ethereum address in a single transaction.

The second attack, occurring a few hours later, was identified as a variant of a sandwich attack, targeting the protocol’s pools and resulting in the attacker netting around $300,000.

As the crypto industry continues to evolve, it becomes imperative for all stakeholders to collaborate to fortify it against potential breaches and ensure the protection of investors worldwide.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.