A cryptocurrency payments platform recently reported an accumulated loss of $31 million following a security breach. The incident took place as a result of hackers managing to get hold of the private keys of the company wallet reserves.
However, a detailed report is yet to be published as an investigation is still pending on the matter at hand. As per media reports, the crypto payments enterprise named Alphapo came in contact with hackers.
The firm has reported that hackers managed to get hold of various cryptocurrencies present in the company reserves. Some of the major cryptocurrencies that hackers managed to siphon include Bitcoin, Ethereum, and Tron tokens among others. Thus far, the firm has refrained from issuing an official estimate of the total stolen cryptocurrencies.
However, private cybersecurity experts postulate that the attack on the Ethereum-based hot wallet allowed hackers to convert their exploits into ETH. The experts also believe that the hackers converted their ETH holdings to Avalanche and then moved them onto the Bitcoin network.
The incident is very recent and the cybersecurity enterprises are still investigating the matter. The major task ahead of the investigators is to find out about the source of the private key leak. Furthermore, another important focus of the investigators is to ascertain the full scope and extent of the hack attack.
It is worth noting that in most hack cases, the first step of the affected firm is to stop any further attacks and remove all points of interception to avoid any additional losses. Alphapo is a well-known crypto payments processing application. To this effect, the firm has been offering around 30 cryptocurrencies.
Alphapo was Involved in Gambling Business
At the same time, the firm was also offering fiat currency transactions. The main business revenue of the firm comes from its involvement with various gambling platforms such as Ignition, Bovada, and HypeDrop. As a natural step, gambling platform HypeDrop permanently halted crypto transactions following the security breach on Alphapo to prevent the parameter of the hack from spreading.
The gambling forum has assured its users that its mystery box platform has remained safe but reported issues with processing withdrawals and deposits. The firm intends to resume the services once the issue at Alphapo has been resolved.
The officials at the firm have refrained from sharing any further details about the hacking incident. However, they have confirmed that the withdrawals and deposits at the firm are in the process of getting gradually reinstated. At the same time, the firm has directed the users to refrain from sending funds or making withdrawals out of their old addresses.
At the same time, the firm has maintained that it is introducing additional verification for all old deposit addresses. The reinstatement of withdrawals and deposits is limited to specified cryptocurrencies.
Another cryptocurrency enterprise to suffer from two consecutive rounds of cyber security breaches is Conic. It is a decentralized finance protocol that is suffering from a hacking scare on account of two major exploits taking place on the protocol within one week.
The first attack resulted in the loss of $3.26 million worth of Ethereum tokens from the reserves that were sent to a single wallet address belonging to hackers. Days later the protocol experienced another security breach on the liquidity pools leading to losses of $300,000.
To avoid getting exposed to security threats, cryptocurrency investors must take technical audits and the historic stability of a DeFi platform into consideration before using it.