IS NORTH KOREA TARGETING CRYPTO SPORTSBOOKS? UBET SPORTS COMMENTS ON THE URGENCY TO SHIFT TOWARDS DECENTRALIZATION
Just in July 2023, there were multi-million dollar heists targeting Web2 crypto sportsbooks:
$37.3M Hack on CoinsPaid
$23M Hack on Alphapo (more than $60M speculated)
Not surprisingly, but progressively, the number of hacks towards online crypto sportsbooks is surging. The vulnerability of crypto payment platforms serving online sportsbooks has been exposed.
The integration of cryptocurrencies has brought convenience and speed to the sports betting industry, but the lack of robust security measures has made these platforms prime targets for hackers.
Two major hacks involving crypto payment processors have sent shockwaves through the online gambling community, prompting questions about the safety of sportsbooks that use cryptocurrencies without smart contracts.
CoinsPaid, a prominent crypto payment platform catering to various online casinos, found itself grappling with significant disruption. Withdrawals were suddenly suspended, leaving users puzzled and concerned about their funds.
In a separate but related incident, Alphapo, another crypto payment processor utilized by online casinos, suffered a severe hot wallet hack.
The hackers made away with at least $60 million worth of cryptocurrencies, including Ethereum, Tron, and Bitcoin. Among the affected platforms was HypeDrop, a customer of Alphapo, which had to disable withdrawals due to issues arising from the hack.
Alphapo and CoinsPaid shared commonalities in their operations, serving various online casinos and experiencing substantial financial losses.
Speculation arose about possible connections between the two incidents, with experts suggesting that a single group of hackers might be behind both attacks.
Crypto researcher Zachxbt speculates that the Lazarus group may be behind this, “The issue is you got hacked by North Korea that's what lol”
A glaring factor in these hacks is the absence of smart contracts in the payment processes. Smart contracts are automated, self-executing agreements with predefined conditions that trigger actions when those conditions are met.
Incorporating smart contracts into crypto payment platforms can significantly enhance security and minimize the risk of large-scale hacks.
This isn’t the end of the world for the punters out there. There are decentralized smart contracts that leverage immutable code, automated securities, and trustless transactions.
UBET Sports democratizes traditional sportsbooks, where the entire betting transaction happens on the blockchain. This makes it nearly impossible to alter, ensuring tamper-proof betting payment protocols, reducing the need for manual intervention, and being non-custodial (the UBET platform does not hold user funds).
The sports betting industry must prioritize robust security measures, conduct regular audits, and stay informed about the latest developments in cybersecurity.
By learning from these unfortunate incidents and leveraging innovative technologies, sportsbooks can continue to embrace cryptocurrencies while safeguarding their platforms and protecting their customers' funds.
The urgency to strengthen security practices is clear, and the industry must act decisively to safeguard its future.
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