Duelbits Hit by $7M Hot Wallet Hack, Second Incident in Two Years

Duelbits, a Curacao-licensed crypto casino and sports betting platform, has suspended operations following a hack that drained an estimated $7 million from its hot wallets. The breach occurred on September 24 and marks the second major security incident for Duelbits in roughly two years.

The attackers exploited a private key leak tied to the platform's hot wallets, sending funds to freshly created wallet addresses. Most of the stolen tokens were quickly converted to ETH and routed through cross-chain bridges and swap protocols.

Duelbits suffered a similar breach in February 2024, losing approximately $4.6 million in that incident. The platform has maintained a separation between operational hot wallets and user reserves held in cold storage.

A co-founder of Duelbits stated that user funds remain safe, with the platform planning to replenish its hot wallets and relaunch. However, the company will need to demonstrate improved key management practices to retain its existing user base.