Alphapo, a payment processor for numerous gambling businesses, revealed a breach of their hot wallets today, July 23, 2023. The hack resulted in a loss of nearly $23 million in Ethereum (ETH), TRON (TRX), and Bitcoin (BTC) coins. The actual amount of Bitcoin stolen is unknown.
Alphapo is well-known for handling payments for a variety of gambling businesses, including HypeDrop, Bovada, and Ignition. Following the event, HypeDrop, an Alphapo customer, was forced to disable withdrawals. The stolen Ethereum monies were exchanged for ETH before being bridged to Avalanche and Bitcoin. The following addresses are involved in the breach:
0x040a96659fd7118259ebcd547771f6ecb9580d17 0x6d2e8a20b8afa88d92406d315b67822c01e53c38 TKSitnfTLVMRbJsF1i2UH5hNUeHLDrXDiY TDoNAZHa7WxarUAFbQUhiijTGtd7EpbzRh TJF7mdFxDuHB4tb9hoyR4SCpKxk7gr23ym1
In response to a question concerning the deposit and withdrawal troubles, HypeDrop replied, “Our provider is currently working to solve some recent issues from their side, they are facing problems specifically related to withdrawals of BTC, ETH, and TRX, as well as deposits for ETH and TRX.” We are continuously monitoring the issue with them and will give you with an update as soon as further information becomes available. “Be assured that even if your payment has been delayed, your funds are secure.”
The event has raised concerns about Alphapo’s security practises and the consequences for its clients. Observers are closely monitoring the situation, with more developments expected as the investigation progresses.
In a related development, a user expressed concern regarding HypeDrop’s operations. The user claims that HypeDrop, controlled by a man named Killian, runs many unregulated internet casinos. According to the user, major winners are instantly subjected to a Know Your Customer (KYC) process, which has supposedly been disclosed in the past, particularly with their influencers. The user also claims that the KYC procedure is never approved. Furthermore, the user criticises HypeDrop’s approach on their CSGO gambling sites, which permits crypto deposits but not withdrawals, a privilege reserved for influencers and skin providers.