Crypto gambling platform Duelbits took its site offline Thursday after attackers drained approximately $7 million from its hot wallets across Ethereum, BNB Chain, Tron and Bitcoin.
Blockchain security firm Scam Sniffer flagged outflows from Duelbits' hot wallets to newly created addresses, citing a suspected private key compromise. The firm later confirmed the company's bitcoin hot wallet also lost 8.1 BTC.
"Confirming a ~$7M hack. Still investigating exactly what happened and how," co-founder Joe wrote on X, adding that "user funds are safe." He said the platform would remain offline until the investigation concluded and hot wallets were refilled.
Etherscan data shows a Duelbits-labeled Ethereum wallet sent 836 ETH, about 593,000 USDT, 97,000 USDC, 31,500 DAI and 12.4 billion SHIB to an attacker address within minutes. The wallet now holds less than $25 in ether.
Most of the stolen assets have been swapped to ether and consolidated into a single new address holding approximately 2,234 ETH, valued at roughly $6 million. The funds had not moved onward as of publication.
Duelbits said it is investigating a "security incident" and took the site offline as a precaution.
The breach bears similarities to a 2023 hack on Stake, the largest crypto casino by volume, which used the same private key compromise method and resulted in a $40 million loss.
Prior to the incident, DappRadar ranked Duelbits 17th of 43 tracked crypto casinos by on-chain deposits, recording about $5.7 million across its monitored wallets. It was not immediately clear whether those figures reflected balances before or after the outflows.
