Duelbits Goes Offline After $7 Million Hot Wallet Theft Across Four Blockchain Networks

Crypto casino Duelbits temporarily shut down its platform after hackers gained access to its hot wallets across four blockchain networks. The co-founder confirmed about $7 million in losses on X and said customer balances were not affected, which is the part PSPs and operators care about first: this was a wallet compromise, not a mass customer-funds event.

1. Scam Sniffer spotted unusual outgoing transactions from Duelbits wallets on Ethereum, BNB Chain, and Tron before the operator publicly acknowledged the hack. That matters because third-party blockchain monitoring picked up the incident before the casino’s own announcement did.
2. The damage estimate first stood at $4.2–4.9 million, then rose to $7 million after another 8.1 BTC was found leaving a separate Bitcoin wallet linked to the platform. The attackers moved a mix of assets: ETH, USDT, USDC, DAI, BNB, and SHIB.
3. Most of the stolen funds were quickly swapped into ETH and sent to a single address. That wallet now holds around 2234 ETH, worth about $6 million, and has not moved since the attack.
4. Researchers say the transfers look like a private key compromise rather than a smart contract exploit, because there were no signs of a code-level vulnerability being used. Duelbits has not yet disclosed the technical cause, so the key-compromise theory remains the outside analysts’ view.
5. A Duelbits representative said the company has identified what happened, is preparing an official statement, and is rebuilding the servers that handle deposits and withdrawals. The site is expected back online within about 15 hours from the incident notice, though that was described as a rough estimate rather than a hard deadline.

This is Duelbits’ second major hot-wallet loss. In February 2024, Halborn said the platform lost about $4.6 million from a vulnerability exploit. The pattern here tracks the 2023 Stake breach, where the largest crypto betting platform by volume lost $40 million through private key compromise rather than a software bug.