Decentralized gambling site Duelbits has suspended its website operations following a breach on Thursday that resulted in the theft of roughly $7 million from its hot wallets.
“Confirming a ~$7M hack. Still investigating exactly what happened and how,” co-founder Joe wrote on X, adding that “user funds are safe.” He noted that the platform will remain offline until the review concludes and its hot wallets are replenished.
Web3 security agency Scam Sniffer initially detected the breach, disclosing that Duelbits hot wallets on Ethereum, BNB Chain, and Tron transferred assets to newly generated addresses in what appears to be a private key compromise. It later mentioned that the platform’s bitcoin hot wallet also suffered a loss of 8.1 BTC.
A private key breach mirrors the technique deployed against Stake, the largest crypto betting platform by trading volume, back in 2023. At that time, perpetrators escaped with $40 million.
Etherscan information indicates that the Ethereum wallet designated as a Duelbits hot wallet transferred 836 ETH, about 593,000 USDT, 97,000 USDC, 31,500 DAI, and 12.4 billion SHIB to the malicious actor within a short span. The address currently retains less than $25 worth of ether.
A major portion of the pilfered funds has since been exchanged for ether and aggregated into a single fresh address holding roughly 2,234 ETH, valued at approximately $6 million. Those tokens had not been transferred further as of the time of reporting.
Prior to the security breach, DappRadar placed Duelbits at 17th out of 43 monitored crypto casinos based on on-chain deposits, holding about $5.7 million across its tracked wallets. It remained uncertain whether those metrics represented balances prior to or following the asset outflows.
In an official announcement, Duelbits stated that it is examining a “security incident” and disabled its web platform as a preventive measure.
Originally published at https://www.coindesk.com/business/2026/09/24/crypto-casino-duelbits-goes-offline-after-usd7m-hot-wallet-hack.
