Crypto gambling platform Duelbits has taken its site offline following a security breach that drained approximately $7 million from its hot wallets on Thursday.
Blockchain security firm Scam Sniffer first detected the incident, reporting unauthorized transfers from Duelbits hot wallets on Ethereum, BNB Chain, Tron, and Bitcoin to newly created addresses. The breach is suspected to have resulted from a private key compromise. Bitcoin holdings were also affected, with 8.1 BTC stolen from the platform's Bitcoin hot wallet.
Transaction data shows that within minutes, the Ethereum hot wallet transferred 836 ETH, approximately 593,000 USDT, 97,000 USDC, 31,500 DAI, and 12.4 billion SHIB to attacker-controlled addresses. The wallet subsequently held less than $25 in ether.
Most of the stolen assets have since been exchanged for ether and consolidated into a single address holding approximately 2,234 ETH, valued at roughly $6 million. As of the time of reporting, these consolidated funds had not been moved further.
Duelbits co-founder Joe confirmed the breach on X, stating that the platform would remain offline until the investigation concludes and hot wallets are replenished. He indicated that user funds remain secure.
Before the incident, DappRadar ranked Duelbits 17th among 43 tracked crypto casinos by on-chain deposits, with approximately $5.7 million across its monitored wallets.
