Alarming Security Breach: Alphapo Hot Wallets Compromised, Resulting in $31 Million Theft

On July 22, alarming news surfaced in the crypto world as security experts reported that popular crypto payment platform Alphapo had fallen victim to a staggering security breach. At least $31 million worth of cryptocurrencies, including Ether, TRON, and Bitcoin, were drained from the platform’s hot wallets. The extent of the Bitcoin theft remains uncertain, leading to concerns that the actual figures might surpass the reported amount.

According to investigations by on-chain analyst ZachXBT, the stolen funds were initially taken from the Ethereum network. The attackers then cleverly converted the stolen assets into Ether, which was subsequently moved to the Avalanche and Bitcoin blockchains. The precise method used to orchestrate this theft is still being probed, with suspicion pointing towards a potential leak of private keys as the root cause.

Alphapo, known for facilitating instant transactions across more than 30 digital assets and offering balances in various fiat currencies, is particularly recognized as a vital crypto gateway for several gambling platforms, including prominent names like HypeDrop, Ignition, and Bovada.

In the wake of the security breach, one of Alphapo’s clients, HypeDrop, announced via Twitter that it had temporarily ceased processing crypto transactions. The mystery box platform cited difficulties with deposits and withdrawals arising from the hack. HypeDrop reassured its users that their funds were safe, placing responsibility for the issue on the side of the cryptocurrency provider. The platform is eagerly awaiting the resumption of operations by the provider to appropriately credit processing deposits.

While Alphapo has yet to officially comment on the incident, a spokesperson informed that the platform is gradually reinstating deposits and withdrawals for specific batches of currencies. The spokesperson also cautioned users against sending funds to old deposit addresses and emphasized that such deposits would be subject to additional verification.

This security breach at Alphapo is not an isolated incident in the crypto space. In recent days, the decentralized finance (DeFi) protocol Conic Finance suffered two separate attacks in a distressing turn of events. The first exploit resulted in a theft of $3.26 million worth of Ether, with nearly the entire amount funneled to an Ethereum address through a single transaction. The second attack, which occurred a few hours later, targeted the protocol’s pools in a variant of a sandwich attack, yielding the attacker around $300,000 in ill-gotten gains.

As the investigations continue into these incidents, the crypto community remains on high alert, emphasizing the critical need for robust security measures and vigilance in the fast-paced and ever-evolving landscape of digital assets.

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