Crypto gambling platform Duelbits has taken its website offline while it investigates a security breach that resulted in approximately $7 million leaving its hot wallets across several blockchain networks.
The incident affected wallets connected to Ethereum, BNB Chain and Tron, while investigators later identified an additional loss involving 8.1 BTC from a Bitcoin hot wallet. Blockchain security researchers detected unusual transfers from Duelbits-controlled addresses to newly created wallets, raising the possibility that an attacker gained control of private keys.
Duelbits co-founder Joe confirmed the incident publicly, writing: “Confirming a ~$7M hack. Still investigating exactly what happened and how.”
He also said that “user funds are safe.” Duelbits has not independently detailed how the compromise occurred or confirmed the suspected private key explanation. The company described the event as a “security incident” and said it took the platform offline as a precaution while its investigation continues.
The casino plans to remain unavailable until it has completed its investigation and replenished the affected hot wallets. The next steps outlined by Joe also include restoring Duelbits operations and launching Duelbits 2.0.
Transfers Spread Across Four Blockchain Networks
The initial suspicious activity involved hot wallets operating on Ethereum, BNB Chain and Tron. Investigators subsequently found that the company’s Bitcoin wallet had lost 8.1 BTC, bringing a fourth blockchain into the incident.
Hot wallets remain connected to online systems so platforms can process cryptocurrency transactions more quickly. That accessibility also means anyone who obtains the credentials controlling a wallet may be able to authorize transfers directly.
The speed and size of the transactions led Scam Sniffer to suspect a private key compromise. Duelbits has not confirmed that assessment.
Transaction records associated with the Ethereum wallet show that an attacker received 836 ETH. Transfers also included approximately 593,000 USDT and 97,000 USDC, together with 31,500 DAI and 12.4 billion SHIB.
After those transfers, the Ethereum address identified as a Duelbits hot wallet held less than $25 worth of ether.
A similar method was linked to an attack against crypto casino Stake in 2023. Hackers took approximately $40 million in that incident.
Stolen Tokens Consolidated Into Ether
Following the Duelbits breach, most of the stolen cryptocurrency was exchanged for ether. The assets were then gathered in a newly created Ethereum address holding approximately 2,234 ETH, valued at around $6 million at the time the transactions were examined.
The funds had not moved onward from that address when the transfers were reported.
The conversion of stablecoins into ether also changes the options potentially available for restricting stolen assets. Companies behind centralized stablecoins such as USDT and USDC can freeze tokens under certain circumstances. Ether has no comparable issuer with the ability to freeze assets in an address.
Questions remain over how the attacker obtained access to Duelbits’ wallets. The company has also not provided a reopening date or explained whether customer deposits were kept in any of the affected wallets.
Before the breach, DappRadar placed Duelbits 17th among 43 crypto casinos it tracked by on-chain deposits. The monitored wallets contained about $5.7 million, although it remained unclear whether that figure represented balances recorded before or after the unauthorized transfers.
Duelbits Keeps Platform Offline During Investigation
Duelbits has kept the casino inaccessible while it examines the breach and restores its wallet infrastructure. The company has maintained that account funds remain unaffected, although independent verification of that claim had not been reported.
The incident has also created an environment where users may encounter fraudulent recovery offers while the legitimate platform remains unavailable. Customers have been warned against using unofficial refund or recovery links circulated during the outage, particularly pages requesting wallet credentials or recovery phrases.
For now, the platform’s return depends on the completion of its internal investigation and the replenishment of its hot wallets. Duelbits has not disclosed when those steps will finish or provided a detailed explanation of the security failure that allowed the transfers.
The company’s stated plans extend beyond bringing the existing service back online. Joe indicated that Duelbits intends to resume operations before proceeding with the launch of Duelbits 2.0, while the investigation into the approximately $7 million breach continues.
Source:
Crypto casino Duelbits goes offline after $7 million hot wallet hack, coindesk.com, September 24, 2026
