- The stolen tokens include Bitcoin, Ethereum and TRON.
- A leak of private keys may have led to the hacking incident. An investigation was underway.
Crypto assets worth more than $31 million were hacked on July 23 from hot wallets through the crypto payment processor Alphapo.
The stolen tokens contain Bitcoin [BTC]Etherium [ETH] and TRON [TRX]. Since the number of Bitcoin tokens stolen was uncertain, the number of thefts may be even higher.
DeDotFi shared the details on Twitter the same day the hacking incident happened. It suggests that a leak of private keys led to the hacking incident.
🚨 Alphapo Hot Wallet Hacked 🚨
Over $31,000,000 stolen, with reports suggesting up to ~$100 million.
Hot wallet has been hacked on Ethereum, Tron and BTC. Stolen money was exchanged and distributed among various EOAs.
🧵: Here are the details of the incident 👇 pic.twitter.com/bLeCLJvH6G
— De.Fi 🛡️ Web3 Antivirus (@DeDotFiSecurity) July 23, 2023
Hackers first converted the stolen money into ETH. They later routed these funds through Avalanche and Bitcoin. This makes it difficult for investigating officers to trace the transaction history.
Alphapo is a payment processor that enables fast transactions in over 30 digital assets. It is also suitable for a wide range of fiat currencies. The processor primarily serves as the cryptocurrency gateway for several gambling platforms, including HypeDrop, Ignition, and Bovada.
HypeDrop, one of Alphapo’s largest clients, immediately stopped processing all crypto transactions following the security incident.
🚨 An update!
We apologize for any inconvenience caused recently by the ongoing deposit and withdrawal issues. Know that your HypeDrop funds are safe, but we have encountered a problem on the side of the cryptocurrency provider.
As soon as the provider’s activities resume, process …
— HypeDrop (@HypeDrop) July 23, 2023
HypeDrop highlighted to its users the ongoing challenges with BTC, ETH, and TRX withdrawals, in addition to ETH and TRX deposits. The company was actively working with its provider to resolve the issues and return operations to normal. It assured its customers about the safety of its funds.
Security issues haunt the crypto industry
Alphapo’s crypto hack has revived security concerns within the cryptocurrency industry and alerted market participants to the ever-present possibility of disastrous crypto attacks. As cryptocurrency grows in popularity, more hackers are targeting payment processors and exchanges to exploit system vulnerabilities.
Nor should we underestimate the importance of such crypto hacks in shaping the rather hostile attitude of regulatory organizations towards crypto payment processors and exchanges.
Compliance with existing rules, as well as the implementation of additional safeguards, will be crucial for crypto platforms for long-term operations. Industry stakeholders have long emphasized the importance of actively working with regulators to create comprehensive security standards that protect consumers without undermining innovation.
