{"investigation":{"slug":"stake-com","entity_name":"Stake.com","trust_score":38,"severity_base":null,"score_modifier":0,"confidence":0.87,"status":"published","content_type":"investigation","summary":"Stake.com is the world's largest crypto gambling platform by revenue, founded in 2017 by Australian entrepreneurs Ed Craven and Bijan Tehrani and operating under a Curacao gaming license. In September 2023, the platform suffered a $41 million hot wallet breach that the FBI formally attributed to North Korea's Lazarus Group (APT38). The platform faces mounting legal and regulatory pressure across multiple jurisdictions, including a landmark California civil suit filed by the Los Angeles City Attorney in 2025, multiple class action lawsuits, and a UK exit following a Gambling Commission investigation.","sections":[{"content":"Stake.com was launched in August 2017 by Australian entrepreneurs Ed Craven and Bijan Tehrani, operating through their company Easygo. The platform is formally operated by Medium Rare N.V., a company incorporated in Curacao holding an online gaming license (OGL/2024/1451/0918) from the Curacao Gaming Authority. Stake offers more than 4,000 casino games including slots, live-dealer games, table games, and a sportsbook covering major sporting events and esports. Users transact exclusively in cryptocurrency, with the platform supporting approximately 20 digital assets including Bitcoin, Ethereum, and Polygon. By 2024, Stake reported gross gaming revenue of approximately $4.7 billion, placing it alongside major traditional gambling operators such as Entain. The platform is blocked in the United States, United Kingdom, much of the European Union, and other jurisdictions, though a separate sweepstakes-model product, Stake.us, operates in 29 US states.","heading":"Platform Overview","sources":[{"url":"https://en.wikipedia.org/wiki/Stake_(online_casino)","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://stake.com/licenses","name":"stake.com","type":"other","credibility":3},{"url":"https://www.businessofigaming.com/stake-crypto-casino-growth-revenue-regulation/","name":"businessofigaming.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On or about September 4, 2023, Stake.com suffered one of the most significant crypto casino security breaches on record, with approximately $41 million drained from hot wallets across three blockchain networks: approximately $15.7 million on Ethereum, $17.8 million on Binance Smart Chain, and $7.8 million on Polygon. Blockchain security researchers PeckShield and ZachXBT first detected the anomalous outflows. The attack involved direct fund transfers from hot wallets with no smart contract interaction, indicating the probable compromise of private key material or authorization credentials for the platform's transaction-signing infrastructure. Co-founder Ed Craven stated publicly that the attackers did not compromise private keys directly, characterizing the breach as targeting the services used to authorize transactions on Ethereum, Polygon, and BNB Chain. Stake acknowledged the breach approximately five hours after the initial attack and asserted that user funds remained secure, as the affected wallets were operational rather than custodial reserves. Security firm Halborn noted the incident illustrated the risk of using a single private key set to control large cryptocurrency holdings, creating a critical single point of failure.","heading":"September 2023 Hot Wallet Hack — $41 Million","sources":[{"url":"https://www.fbi.gov/news/press-releases/fbi-identifies-lazarus-group-cyber-actors-as-responsible-for-theft-of-41-million-from-stakecom","name":"fbi.gov","type":"other","credibility":3},{"url":"https://www.halborn.com/blog/post/explained-the-stake-com-hack-september-2023","name":"halborn.com","type":"other","credibility":3},{"url":"https://hacken.io/discover/stake-com-hack-sep-2023/","name":"hacken.io","type":"other","credibility":3},{"url":"https://www.bleepingcomputer.com/news/security/crypto-casino-stakecom-loses-41-million-to-hot-wallet-hackers/","name":"bleepingcomputer.com","type":"other","credibility":3},{"url":"https://www.dlnews.com/articles/defi/stake-co-founder-says-hacker-did-not-compromise-private-keys/","name":"dlnews.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On September 6, 2023, the Federal Bureau of Investigation (FBI) issued a formal public statement attributing the Stake.com hack to the Lazarus Group, also designated APT38, a North Korean state-sponsored threat actor operating under the direction of the Democratic People's Republic of Korea (DPRK). The FBI published the blockchain wallet addresses used by the attackers across Ethereum, BSC, and Polygon networks and warned virtual asset service providers to treat transactions from those addresses as high risk. The agency contextualized the Stake breach within a broader 2023 DPRK cyber campaign that also targeted Alphapo and CoinsPaid (approximately $60 million, July 2023) and Atomic Wallet (approximately $100 million, June 2023), with total DPRK crypto theft in 2023 estimated to exceed $200 million. Blockchain analytics firm TRM Labs separately confirmed the FBI's attribution findings through on-chain tracing. The Lazarus Group is widely regarded by US intelligence and cybersecurity researchers as the most prolific state-sponsored crypto theft actor globally.","heading":"FBI Attribution: Lazarus Group / DPRK","sources":[{"url":"https://www.fbi.gov/news/press-releases/fbi-identifies-lazarus-group-cyber-actors-as-responsible-for-theft-of-41-million-from-stakecom","name":"fbi.gov","type":"other","credibility":3},{"url":"https://www.trmlabs.com/resources/blog/fbi-confirms-that-north-korea-was-behind-41-million-stake-com-exploit","name":"trmlabs.com","type":"other","credibility":3},{"url":"https://decrypt.co/155360/fbi-says-north-koreas-lazarus-group-was-behind-41-million-stake-hack","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.securityweek.com/fbi-blames-north-korean-hackers-for-41-million-stake-com-heist/","name":"securityweek.com","type":"other","credibility":3}],"severity":"medium"},{"content":"In April 2023, TGP Europe Limited, the entity operating Stake in the United Kingdom under a UK Gambling Commission license, was fined £316,250 for failures to meet anti-money laundering (AML) and social responsibility requirements. In February 2025, TGP Europe announced it would cease UK operations entirely by March 11, 2025, amid a Gambling Commission investigation into a widely circulated social media video featuring the Stake brand adjacent to a UK university campus. The Gambling Commission had also written formally to Everton FC and other Premier League clubs holding Stake sponsorships, warning club officers of potential criminal liability for promoting unlicensed gambling businesses to Great Britain consumers. Stake characterized its UK exit as a strategic decision to pursue in-house local licensing in regulated markets such as Brazil and Italy rather than continuing white-label arrangements.","heading":"Regulatory Actions and UK Exit","sources":[{"url":"https://www.gamblingcommission.gov.uk/news/article/consumer-information-notice-stake-leaving-gb-market","name":"gamblingcommission.gov.uk","type":"other","credibility":3},{"url":"https://igamingbusiness.com/legal-compliance/regulation/stake-uk-gambling-commission/","name":"igamingbusiness.com","type":"other","credibility":3},{"url":"https://www.affiversemedia.com/stake-to-exit-uk-market-following-gambling-commission-investigation/","name":"affiversemedia.com","type":"other","credibility":3}],"severity":"medium"},{"content":"In August 2025, Los Angeles City Attorney Hydee Feldstein Soto, in partnership with law firm Susman Godfrey, filed a civil complaint in Los Angeles Superior Court (case no. 25STCV25304) against Sweepsteaks Ltd. (operating as Stake.us), Easygo Group Holdings Pty Ltd., Medium Rare N.V., Kick Streaming Pty Ltd., co-founders Ed Craven and Bijan Tehrani, and multiple game suppliers including Evolution AB, Pragmatic Play, Hacksaw Gaming, and Red Tiger Gaming. The complaint alleged that Stake.us operates as an illegal online gambling business in California under the guise of a free sweepstakes model, bundling entertainment-only Gold Coins with Stake Cash redeemable for cryptocurrency or gift cards. The LA City Attorney described this as the first government civil enforcement action in the United States against an online sweepstakes casino operator. Multiple private class action lawsuits were also filed across Virginia, Missouri, and Illinois in late 2025, with plaintiffs alleging deceptive trade practices, illegal gambling promotion through celebrity endorsers Drake and Adin Ross, and restrictive playthrough requirements that impede withdrawals. A Harvard Law School journal article published in April 2026 described the class action litigation as carrying sweeping implications for the broader US social casino industry.","heading":"US Litigation: California Civil Suit and Class Actions","sources":[{"url":"https://cityattorney.lacity.gov/updates/la-city-attorney-hydee-feldstein-soto-files-lawsuit-against-online-gambling-enterprise","name":"cityattorney.lacity.gov","type":"other","credibility":3},{"url":"https://www.susmangodfrey.com/news/susman-godfrey-and-the-los-angeles-city-attorney-file-landmark-lawsuit-against-stake-us-on-behalf-of-the-people-of-the-state-of-california/","name":"susmangodfrey.com","type":"other","credibility":3},{"url":"https://quicktakes.loeb.com/post/102m1c5/class-action-targets-stakeus-drake-and-adin-ross-for-illegal-gambling-promotion","name":"quicktakes.loeb.com","type":"other","credibility":3},{"url":"https://journals.law.harvard.edu/jsel/2026/04/high-stakes-litigation-the-sweeping-implications-of-the-class-action-suit-against-stake-and-drake/","name":"journals.law.harvard.edu","type":"other","credibility":3},{"url":"https://www.kctv5.com/2025/10/28/deliberate-deception-lawsuit-targets-stake-drake-alleged-illegal-gambling-scheme/","name":"kctv5.com","type":"other","credibility":3}],"severity":"medium"},{"content":"A 2024 US Department of Justice civil forfeiture complaint sought seizure of over $5 million in Bitcoin allegedly stolen through SIM-swapping attacks against five US victims between October 2022 and March 2023. The DOJ complaint traced the stolen funds through multiple wallets to an account at Stake.com, where the funds were alleged to have been laundered via at least 32 circular deposit-and-withdrawal transactions. Stake.com was named in the complaint as a platform through which funds were processed but was not accused of direct wrongdoing. Separately, investigative reporting by Reporter and The Guardian identified weak age verification and AML controls on Stake's crypto betting site, including allegations that Stake paid affiliate websites that promoted VPN usage to circumvent geographic restrictions. The Fincrime Central analysis noted that Stake's registered operator, Medium Rare N.V., operates from Curacao, a jurisdiction described as having limited cross-border enforcement capacity. Co-founder Bijan Tehrani's purchase of a $47 million US property was cited as anomalous given the platform's explicit prohibition from the US market.","heading":"AML Concerns and DOJ Involvement","sources":[{"url":"https://www.justice.gov/usao-dc/pr/justice-department-seeks-forfeiture-over-5-million-bitcoin-stolen-sim-swapping-scams","name":"justice.gov","type":"other","credibility":3},{"url":"https://www.casino.org/news/stake-com-cited-as-doj-seeks-5-million-bitcoin-seizure-in-sim-swap-case/","name":"casino.org","type":"other","credibility":3},{"url":"https://reporter.london/490/","name":"reporter.london","type":"other","credibility":3},{"url":"https://fincrimecentral.com/stake-multi-billion-gambling-empire/","name":"fincrimecentral.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Stake entered a high-profile sponsorship agreement with rapper Drake, reported to be valued at approximately $100 million per year, making him the first global recording artist to formally endorse an online casino platform. Drake frequently appeared on livestreams wagering large sums, which critics alleged glamorized gambling to younger audiences. An investigation by Bloomberg Businessweek alleged that Drake won slot machine games at a rate approximately four times higher than the average Stake user, raising questions about preferential outcomes. Drake subsequently publicly criticized Stake after alleging four withdrawal attempts were blocked without explanation, sharing customer service screenshots on Instagram. Multiple lawsuits named Drake and streamer Adin Ross as defendants alongside Stake.us, alleging that their promotional activities constituted illegal marketing of gambling services to US consumers. Stake also maintained a sponsorship agreement with Everton FC in the Premier League, which drew regulatory scrutiny from the UK Gambling Commission as described above.","heading":"Drake Sponsorship Controversy and Celebrity Endorsements","sources":[{"url":"https://igamingexpert.com/news/affiliates/stake-drake-accusations/","name":"igamingexpert.com","type":"other","credibility":3},{"url":"https://blockworks.com/news/drake-endorsed-crypto-gambling-firm-stake-lawsuit","name":"blockworks.com","type":"other","credibility":3},{"url":"https://www.hotnewhiphop.com/980636-drake-exposed-winning-unrealistic-games-stake","name":"hotnewhiphop.com","type":"other","credibility":3},{"url":"https://www.vibe105to.com/drake-cuts-ties-with-stake-after-withdrawal-dispute/","name":"vibe105to.com","type":"other","credibility":3}],"severity":"medium"},{"content":"In October 2022, Twitch banned Stake.com from advertising on its platform following pressure from prominent streamers including Pokimane, who argued the site lacked adequate consumer protections for an unlicensed gambling platform. Within two months of the Twitch ban, Stake co-founders Ed Craven and Bijan Tehrani launched Kick, a competing livestreaming platform, in January 2023. Kick and Stake operate from the same Melbourne headquarters, are both owned by the Easygo corporate group, and share executives and employees. Kick differentiates itself by offering a 95/5 revenue split in streamers' favor (compared to Twitch's 50/50 standard), and gambling content remains prominent on the platform. Kick has been identified in the 2025 California civil lawsuit as a co-defendant in the alleged illegal gambling promotion scheme. Industry observers have characterized the Kick launch as a vertical integration strategy allowing Stake to retain promotional reach after losing access to Twitch's audience.","heading":"Kick Streaming Platform and Twitch Ban","sources":[{"url":"https://kotaku.com/twitch-kick-stake-gambling-trainwreck-crypto-1849863856","name":"kotaku.com","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/Kick_(service)","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://www.streamscheme.com/who-owns-kick-streaming/","name":"streamscheme.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Stake.com was co-founded by Ed Craven (born 1995, Melbourne, Australia) and Bijan Tehrani (born in the United States to Iranian parents, residing in Melbourne). The two first connected through the online game RuneScape in 2010 and subsequently built Primedice, a Bitcoin dice game, before launching Stake in 2017. Both founders are publicly identified and have given media interviews. The platform is operated by Medium Rare N.V. (Curacao), with regional entities including TGP Europe Limited (formerly UK-licensed) and Stake Brazil Ltda (Brazilian licensed). The broader corporate structure is held under Easygo Group Holdings Pty Ltd., which also owns Kick Streaming Pty Ltd. Ed Craven has been described as one of the world's youngest self-made billionaires. Both founders are named as defendants in the 2025 California civil complaint filed by the Los Angeles City Attorney.","heading":"Founders and Corporate Structure","sources":[{"url":"https://en.wikipedia.org/wiki/Ed_Craven","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/Bijan_Tehrani_(entrepreneur)","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://casinobeats.com/features/ed-craven-net-worth/","name":"casinobeats.com","type":"other","credibility":3},{"url":"https://cityattorney.lacity.gov/updates/la-city-attorney-hydee-feldstein-soto-files-lawsuit-against-online-gambling-enterprise","name":"cityattorney.lacity.gov","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2017-08","event":"Stake.com launched by Ed Craven and Bijan Tehrani through Easygo, operating under a Curacao gaming license.","source":"","date_original":"2017-08-01"},{"date":"2022-10","event":"Twitch bans Stake.com from advertising on its platform, citing lack of consumer protections for unlicensed gambling.","source":"","date_original":"2022-10-01"},{"date":"2023","event":"Kick streaming platform launched by Stake co-founders Craven and Tehrani as a direct Twitch competitor, within two months of the Twitch ban.","source":"","date_original":"2023-01-01"},{"date":"2023-04","event":"UK Gambling Commission fines TGP Europe (Stake's UK operator) £316,250 for AML and social responsibility failures.","source":"","date_original":"2023-04-01"},{"date":"2023-09-04","event":"$41 million drained from Stake.com hot wallets across Ethereum, BSC, and Polygon in a targeted security breach.","source":""},{"date":"2023-09-06","event":"FBI issues formal statement attributing the Stake.com hack to North Korea's Lazarus Group (APT38), publishing attacker wallet addresses.","source":""},{"date":"2024","event":"DOJ civil forfeiture complaint names Stake.com as a platform through which SIM-swap-derived stolen Bitcoin was 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