Crypto casino Duelbits goes offline after $7 million hot wallet hack

Duelbits, a crypto gambling platform, has taken its website offline after attackers drained its hot wallets on multiple blockchains in an incident the company estimates at roughly $7 million. The platform’s co-founder posted on X that the team is still investigating the cause, that user funds are safe, and that the site will stay offline until the investigation is complete and hot wallets are refilled. Security monitor Scam Sniffer first flagged outbound transactions from Duelbits' hot wallets on Ethereum, BNB Chain and Tron and later reported that the company’s bitcoin hot wallet lost 8.1 BTC. Scam Sniffer described the pattern as consistent with a suspected private key compromise — the same attack method implicated in a 2023 hack of Stake that resulted in $40 million in theft. Blockchain explorer data attributed to a Duelbits-labeled Ethereum hot wallet shows large, rapid outflows including 836 ETH, about 593,000 USDT, 97,000 USDC, 31,500 DAI and 12.4 billion SHIB. Most of the stolen tokens were swapped to ether and then consolidated into a single new address that now holds about 2,234 ETH, worth roughly $6 million; those consolidated funds had not moved further at the time of reporting. Before the breach, on-chain tracker DappRadar ranked Duelbits 17th among 43 crypto casinos it monitors, showing about $5.7 million across tracked wallets, though it was not immediately clear whether that figure reflected balances before or after the outflows. Duelbits has said it is investigating the security incident and took the precaution of taking its platform offline while that work continues.