Cloudbet emphasizes the importance of security amid Stake.com hack

Cloudbet highlighted its cold and hot wallet storage, multi-signature approvals, MPC, and 2FA

In response to the reported hack of Stake.com, which resulted in a loss of approximately $41.3m, Cloudbet, a cryptocurrency-based sportsbook and casino, has issued a statement underscoring the importance of security in the cryptocurrency industry.

The attack on Stake.com involved unauthorized transactions of $15.7m in the Ethereum blockchain, $7.8m in Polygon, and an additional $17.8m through the Binance Smart Chain.

Cloudbet, a pioneer in crypto betting since its establishment in 2013, has urged companies in the industry to prioritize security protocols.

A Cloudbet spokesperson emphasized:

“In many ways, an attack on one is an attack on all, and this industry only thrives if our users know with all possible certainty that their funds are safe and secure. This incident is a reminder that the industry must continuously put in place the most robust security protocols possible.”

Cloudbet's security architecture relies on multiple layers of safeguards, including cold and hot wallet storage, multi-signature approvals, and multi-party computation (MPC). Additional measures, such as two-factor authentication (2FA) and rigorous key management, further protect user funds.

Cloudbet maintains a proactive approach to security by conducting internal fire drills quarterly, ensuring the continuous enhancement of security standards in response to emerging threats.

The Cloudbet spokesperson further stated that incidents like Stake.com's were rare, and they emphasized the need for everyone to remain vigilant in order to maintain the trust that users are placing in betting platforms.

Stake.com, on the other hand, has affirmed its commitment to user safety, citing the use of encryption, firewall technology, and rigorous internal processes.

The recent hack is not the only challenge faced by Stake.com, as it is currently involved in a legal dispute in Australia due to similarities in operating names with another entity named Stake.

Various betting platforms have responded to the recent security breach at Stake.com on social media by highlighting their own unique features. JustBet emphasized its decentralized nature, transparent bankroll, and non-custodial wallet. 

Divvy.Bet highlighted that it offers a secure and user-controlled betting experience through non-custodial wagering via smart contracts with users maintaining control over their assets, which eliminates the need for deposits, withdrawals, and centralized operators.

UBET Sports, on the other hand, urged users to join its platform, while Stake temporarily suspended its services due to the reported security breach.

Looking for your next crypto casino? Check out Mega Dice or FortuneJack!

Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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