Alphapo’s Hacked Funds Reportedly Reach $60 Million

The losses incurred by crypto payments processor Alphapo during its security breach are now estimated to be $60 million, roughly two days after hackers exploited the platform’s hot wallets.

According to an update provided by on-chain sleuth ZachXBT, an additional $37 million compromised during the hack on Tron and Bitcoin has been located, increasing the initial estimate of $23 million to $60 million.

Alphapo’s Hack Estimated to $60M

Alphapo is a payments processor for crypto-related gambling platforms such as HypeDrop, Bovada, and Ignition. The platform’s hot wallets were drained on July 23, with the attackers stealing over $23 million. The hackers managed to gain control of users’ crypto assets on several blockchains, including Bitcoin, Ethereum, and Tron.

Blockchain security firm PeckShield disclosed that the assets stolen were approximately 6 million USDT, 108,000 USDC, 2,500 ETH, 1,700 DAI, 100 million FTN, 430,000 TFL, and an undetermined amount of BTC. The hackers swapped the stablecoins and other tokens for over 5,730 ETH before bridging them to Avalanche and Bitcoin.

ZachXBT said the hack appeared to have been perpetrated by the infamous North Korea-linked hacker group Lazarus due to their “very distinct” on-chain fingerprint. Lazarus Group is believed to be behind crypto’s largest hack involving the Ronin Network, with a loss of $620 million. Reports disclosed that the hacker group stole roughly $1.7 billion in crypto throughout 2022.

Alphapo Unsure of Withdrawal Resumption Time

While Alphapo attempted to contain the incident on Sunday, the HypeDrop team halted the platform’s withdrawal service and informed users that their provider was working to resolve some issues on their side.

Alphapo is yet to release an official statement updating users on the matter. However, HypeDrop said it is monitoring the situation and would ensure the funds of users whose payments were affected are safe.

In a recent tweet, the HypeDrop team said they had disabled crypto deposits for the time being because Alphapo is still manually processing withdrawals slowly. However, they have procured the services of another provider, as Alphapo is not sure when withdrawals will be automated again.

“Our provider has advised us that withdrawals will be automated again, but unfortunately with no ETA. Therefore, we’ve implemented another payment service provider today as a backup option. We want to remind you that withdrawals will get paid out, either by our current provider or new provider,” HypeDrop said.