Duelbits went offline after attackers drained about $7 million from hot wallets across four blockchains, with most stolen assets later converted to Ethereum (ETH).
Key Points:
- Duelbits confirmed a roughly $7 million hot-wallet breach and said customer funds remain safe while its site is offline.
- Scam Sniffer traced suspicious transfers across Ethereum, BNB Chain, Tron and Bitcoin (BTC), while the exact entry point remains under investigation.
- Most stolen assets were swapped into ETH and consolidated into one address holding about 2,234 ETH, worth roughly $6 million.
Ethereum Wallet Breach
Scam Sniffer first flagged unusual transfers from Duelbits hot wallets on Ethereum, BNB Chain and Tron, then reported that another wallet lost 8.1 BTC. Joe, a Duelbits co-founder, later confirmed a roughly $7 million hack and said the casino would remain offline during the investigation.
“Confirming a ~$7M hack. Still investigating exactly what happened and how,” Joe wrote, while also saying user funds were safe. Duelbits has not publicly explained how the attackers gained access, and reporting has not independently verified the company’s statement about customer balances.
On-chain data showed the Ethereum wallet sent 836 ETH, about 593,000 Tether (USDT), 97,000 USD Coin (USDC), 31,500 Dai (DAI) and 12.4 billion Shiba Inu (SHIB) within minutes. Most stolen assets were later exchanged for ETH and consolidated in one address holding about 2,234 ETH, valued near $6 million at the time.
Also Read: Bitget Confirms $351.6M Breach And Suspends All Withdrawals
Scam Sniffer Analysis
Scam Sniffer said the speed and pattern of the transfers suggested a possible private-key compromise, which could allow an attacker to control a wallet without exploiting the underlying blockchain.
Duelbits has not confirmed that theory, leaving the breach method unresolved while the platform works to refill its hot wallets and restore service.
Moving stolen stablecoins into ETH can also limit some recovery options because centralized issuers can freeze tokens such as USDT or USDC under certain conditions, while Ether has no comparable issuer. The consolidated 2,234 ETH had not moved onward when researchers traced it.
Duelbits faced another hot-wallet theft in Feb. 2024, when security firm Halborn reported that an attacker exploited a security vulnerability and drained about $4.6 million. That earlier incident involved the same broad risk area, online wallets used for fast transactions but exposed to greater access risk than offline storage.
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