Crypto gambling platform Duelbits has taken its website offline after attackers drained approximately $7 million from its hot wallets in a suspected security breach.
Duelbits co-founder Joe confirmed the incident in a post on X, stating that the platform was investigating the attack while assuring users that customer funds remained safe. The platform will remain offline until the investigation is completed and its hot wallets are replenished.
Blockchain security firm Scam Sniffer initially identified the incident, reporting that Duelbits hot wallets across Ethereum, BNB Chain, and Tron transferred funds to newly created addresses in what appeared to be a private key compromise. The company later reported that the platform’s Bitcoin hot wallet was also affected, with 8.1 BTC lost in the incident.
On-chain data showed significant movements from a wallet labeled as a Duelbits hot wallet on Ethereum. The address transferred 836 ETH, approximately 593,000 USDT, 97,000 USDC, 31,500 DAI, and 12.4 billion SHIB to attacker-controlled addresses within minutes. Following the transfers, the wallet balance dropped to less than $25 in ether.
Most of the stolen assets were later converted into ether and consolidated into a single address holding approximately 2,234 ETH, valued at around $6 million at the time of reporting. The funds had not moved further after consolidation.
The attack highlights continued security risks associated with hot wallet infrastructure, where private key management remains a critical factor for platforms handling digital assets. Similar private key-related incidents have previously affected major crypto platforms, including the 2023 attack on crypto casino Stake, where attackers stole $40 million.
Before the breach, DappRadar ranked Duelbits 17th among 43 tracked crypto casinos by on-chain deposits, with approximately $5.7 million held across monitored wallets. It remains unclear whether those figures represented balances before or after the reported outflows.
Duelbits described the event as a security incident and said taking the platform offline was a precautionary measure while investigations continue.
Market participants may continue monitoring whether the stolen assets move further on-chain, the outcome of Duelbits’ security investigation, and whether additional information emerges regarding the cause of the wallet compromise.
