Crypto payment platform Alphapo suffered a major security breach on July 22, resulting in the loss of at least $31 million from its hot wallets, comprising cryptocurrencies Ether (ETH), TRON (TRX), and Bitcoin (BTC). The value of the stolen assets is likely to be even higher due to uncertainties surrounding the number of stolen Bitcoins.
According to security experts, the attack was executed by siphoning funds from Alphapo’s hot wallets on the Ethereum network, converting them into ETH, and then moving them to the Avalanche and Bitcoin blockchains.
The breach may have been facilitated by a leak of private keys, although investigations are ongoing to determine the full extent and cause of the hack.
Alphapo is a prominent payment processor offering instant transactions in over 30 digital assets, along with fiat currency balances.
It has gained recognition as the gateway for various gambling platforms, including HypeDrop, Ignition, and Bovada.
Following the security incident, one of Alphapo’s clients, HypeDrop, temporarily suspended crypto transactions due to the hack’s impact on their operations.
The mystery box platform assured its users that their funds are safe but acknowledged the disruption in processing deposits and withdrawals. HypeDrop expects normal operations to resume once the cryptocurrency provider resolves the issue.
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Despite the breach, Alphapo’s spokesperson declined to comment on the specific details of the incident.
However, they did confirm that deposits and withdrawals are being gradually reinstated for certain batches of currencies.
Users were urged not to send funds to old deposit addresses and were assured that any funds from such deposits would undergo additional verification.
In a separate security-related event, decentralized finance protocol Conic Finance faced two attacks in quick succession over the past few days.
The first attack resulted in the theft of $3.26 million worth of Ether, with the majority of the stolen funds sent to a single Ethereum address.
Shortly after, a second incident occurred in which the attacker employed a variant of a sandwich attack to target the protocol’s pools, yielding them around $300,000.
Both Alphapo and Conic Finance incidents highlight the ongoing risks and vulnerabilities in the cryptocurrency space.
Security experts and blockchain communities remain vigilant as they continue to develop and implement measures to protect users’ assets from potential threats.
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