Crypto gambling platform Duelbits took its website offline on Thursday after attackers drained roughly $7 million from its hot wallets. Co-founder Joe confirmed the incident on X, saying user funds are safe.
He said the platform will remain offline until the investigation is completed and the hot wallets are replenished. In a separate statement, Duelbits said it is investigating a “security incident” and shut the site down as a precaution.
Blockchain security firm Scam Sniffer was among the first to flag the breach. According to the firm, funds were sent from Duelbits hot wallets on Ethereum, BNB Chain and Tron to newly created addresses, pointing to a suspected private key compromise. Scam Sniffer later said the company’s bitcoin hot wallet also lost 8.1 BTC.
The same method was used in the 2023 attack on Stake, the largest crypto casino by volume, when hackers stole $40 million.
Etherscan data shows that a wallet labeled as a Duelbits hot wallet on Ethereum sent 836 ETH, about 593,000 USDT, 97,000 USDC, 31,500 DAI and 12.4 billion SHIB to the attacker within minutes. The wallet now holds less than $25 in ether.
Most of the stolen assets were then swapped into ether and consolidated into a single new address holding about 2,234 ETH, worth roughly $6 million. As of publication, those funds had not moved further.
Before the incident, DappRadar ranked Duelbits 17th among 43 tracked crypto casinos by on-chain deposits. It showed about $5.7 million across wallets monitored by the service, though it was unclear whether that figure reflected balances before or after the outflows.
