Crypto Casino Duelbits Goes Offline After $7 Million Hot Wallet Hack

Crypto gambling platform Duelbits has taken its site offline after attackers drained roughly $7 million from its hot wallets on Thursday. Co-founder Joe confirmed the hack on X, saying the team is still working out what happened and how, and that user funds are safe. The platform will stay offline until the investigation ends and its hot wallets are refilled. In a statement, the company called it a “security incident” and said it shut the site down as a precaution.

How the Hot Wallet Attack Unfolded

Blockchain security firm Scam Sniffer first flagged the incident. It reported that Duelbits hot wallets on Ethereum, BNB Chain and Tron sent funds to newly created addresses in a suspected private key compromise, and later said the bitcoin hot wallet also lost 8.1 BTC. On-chain data shows the Ethereum wallet sent out 836 ETH, about 593,000 USDT, 97,000 USDC, 31,500 DAI and 12.4 billion SHIB within minutes. It now holds less than $25 in ether.

Where the Stolen Crypto Went

Most of the stolen assets were swapped to ether and gathered in one new address holding about 2,234 ETH, worth roughly $6 million. The funds had not moved on when this was written.

Private Key Compromise and Crypto Casino Security

A private key compromise also hit Stake, the largest crypto casino by volume, in 2023, when hackers took $40 million. Before the attack, DappRadar ranked Duelbits 17th of 43 tracked crypto casinos by on-chain deposits, with about $5.7 million across monitored wallets. It is unclear whether that figure was recorded before or after the outflows.