The crypto gambling site Duelbits has gone offline after hackers siphoned off approximately $7 million from its hot wallets.
Funds were drained from hot wallets on four different blockchains, with around $6 million now consolidated into a single Ethereum address.
Co-founder Joe announced on X that the platform is investigating the situation, confirming the breach and assuring that user funds are secure. He stated that the site would remain offline until the investigation is complete and the wallets are replenished.
Blockchain security firm Scam Sniffer initially reported the incident, indicating that the hot wallets on Ethereum, BNB Chain, Tron, and Bitcoin were compromised, suggesting a potential private key breach. The firm noted that Duelbits' Bitcoin hot wallet also lost 8.1 BTC.
This method of hacking was also used in a significant breach earlier this year involving Stake, the leading crypto casino, which lost $40 million.
Data from Etherscan reveals that the compromised Ethereum wallet, identified as a Duelbits hot wallet, transferred substantial amounts of various cryptocurrencies to the hacker within a short time frame. Currently, the wallet retains less than $25 in ether.
Following the hack, the majority of the stolen funds were converted to ether and transferred to a single new address, which holds about 2,234 ETH, equating to approximately $6 million. As of now, these funds have not been moved further.
Prior to the hack, DappRadar ranked Duelbits as 17th among 43 monitored crypto casinos based on on-chain deposits, showing around $5.7 million across its wallets. It remains unclear if these figures reflect the account balances before or after the thefts.
Duelbits has issued a statement declaring that it is actively looking into the "security incident" and has taken the site offline as a precautionary measure.