Alphapo, a payment processor, reportedly fell victim to hackers, resulting in a loss of more than $23 million in various coins and tokens.
Crypto “detective” ZachXBT, who has been closely tracking the movement of stolen funds across different networks, brought to light the Alphapo attack on July 23.
According to ZachXBT’s report, the hackers exploited vulnerabilities in Alphapo’s security measures, gaining access to the platform’s hot wallets for Ethereum, Tron, and Bitcoin.
Subsequently, they drained these wallets, causing substantial losses for the payment processor.
As part of their attack, the hackers utilized the stolen tokens to purchase additional Ethereum.
To further obfuscate their trail, they transferred the newly acquired Ethereum to the Avalanche network, making it increasingly challenging to trace the origins of the illicit funds.
At the same time, the stolen Bitcoins were promptly transferred to a different address, further complicating efforts to recover the digital assets.
The hack not only impacted Alphapo but also had ripple effects on several crypto services, including HypeDrop, Bovada, and Ignition. As a result of the breach, users of the services encountered difficulties in withdrawing their cryptocurrencies, further exacerbating the situation.
In an official statement, HypeDrop acknowledged the hack and informed its users that their provider is actively working to address the issues arising from the breach.
Notably, they are currently experiencing difficulties with BTC, ETH, and TRX withdrawals, as well as deposits for ETH and TRX.
To assist in resolving the incident, ZachXBT has identified the wallet addresses linked to the $23 million hack. However, the extent of the Bitcoin theft remains unclear as the investigation continues.
Hacks are common in decentralized finance (DeFi).
PeckShield, a blockchain intelligence firm, has in recent past recorded over 395 exploits cumulatively leading to the loss of more than $479.4 million. .