Crypto and blockchain investigators believe that the hack was caused by a private key leak.
Alphapo, a cryptocurrency payment platform, reported a loss of more than $31 million from its Ether (ETH), Tron (TRX), and Bitcoin (BTC) hot wallets on July 22nd.
It is worth noting that due to an undetermined amount of crypto involved in the hack, the actual loss might exceed the current estimates.
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Blockchain analyst ZachXBT revealed that the stolen funds were initially transferred on the Ethereum network, converted into Ether, and shifted to the Avalanche and Bitcoin blockchains.
While the investigation is underway, DeDotFi's security team suggests a private key leak as the probable root of the breach.
In the aftermath of the breach, Alphapo's customer HypeDrop suspended cryptocurrency transactions. Announcing on Twitter, the online mystery box provider indicated that it was experiencing deposit and withdrawal difficulties.
Please know that your HypeDrop funds are safe, but we encountered an issue on the cryptocurrency provider’s side. Once the provider’s operations resume, processing deposits will be credited accordingly.
While Alphapo has yet to publicly address the breach, an inside source revealed that the platform is gradually restoring deposits and withdrawals for specific currencies. The person familiar with the matters inside Alphapo noted:
We kindly request all our users to refrain from sending funds to the old deposit addresses. However, in the odd case this happens, the funds deriving from such deposits will be additionally verified.
Alphapo facilitates real-time transactions across over 30 digital assets, offering balance tracking in various fiat currencies. Prominent online gambling platforms, like HypeDrop, Ignition, and Bovada, use Alphapo as their principal crypto payment channel.
As crypto hacks and scams become an increasing problem, the Vermont Department of Financial Regulation (DFR) warned about increasing cryptocurrency investment scams on social media platforms.
