$7M Duelbits Hack Exposes Flaw in Crypto Casino Security
A major cryptocurrency hack has left Duelbits, an online betting platform for crypto users, offline after attackers drained roughly $7 million from its hot wallets. The company confirmed the breach and took down its site as a precaution, assuring customers that their funds are safe.
The hack is believed to have involved a private key compromise of Duelbits' hot wallets on multiple blockchains, with Ethereum, BNB Chain, Tron, and Bitcoin affected. According to Scam Sniffer's findings, the attackers likely gained direct control over the keys authorizing transactions from Duelbits' hot wallets.
The stolen assets were swapped to ether and consolidated into a single Ethereum address holding about 2,234 ETH, worth close to $6 million, which has not moved since. This method is not new to the crypto gambling world, as seen in Stake's $40 million breach in 2023 using the same technique.
Duelbits' co-founder Joe stated that user funds are safe and the site will stay down until wallets are refilled and the investigation concludes.