Customers Lose $635K in Theft After DraftKings Website Hack

Posted: January 30, 2024, 08:47h. 

Last updated: January 30, 2024, 08:47h.

With additional arrests of suspected hackers associated with stealing from DraftKings accounts, the hacking scheme led to the unauthorized access of approximately 60,000 accounts and the theft of funds from 1,600 of them, according to federal prosecutors and press reports.

Manhattan U.S. Attorney Damian Williams
Manhattan U.S. Attorney Damian Williams, pictured above. The federal prosecutor announced the arrests of two suspects in a hacking scheme. (Image: Wall Street Journal)

Federal prosecutors explained that a “credential stuffing attack” consisted of hackers obtaining access to DraftKings accounts through the use of stolen credentials from other data breaches.

Two suspects have been arrested for their connection to the scheme, including Nathan Austad of Farmington, Minn., and Kamerin Stokes of Memphis, Tenn.

Both suspects are facing serious charges, including conspiracy to commit computer intrusions, unauthorized access to a protected computer, wire fraud, and aggravated identity theft. In addition to the charges, Austad allegedly had accounts with approximately $465,000 worth of cryptocurrency deposits, which officials suggest was from the credential stuffing attacks and the sale of stolen accounts.

Prior Defendant Sentencing

Another defendant, Joseph Garrison, 19, of Madison, Wis., who was also linked to the hacking scheme, is facing up to five years in prison after pleading guilty last November to conspiracy to commit computer intrusion.

Our office is relentless in tracking down the perpetrators of cybercrime,” Manhattan U.S. Attorney Damian Williams said in a statement announcing the two recent arrests.

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