Crypto gambling platform Duelbits has taken its website offline after hackers drained approximately $7 million from its hot wallets across multiple blockchains, in what is suspected to be a compromise of the platform's private keys.

Duelbits co-founder Joe confirmed the attack, saying the platform was still investigating how the breach had occurred and that user funds were safe. The casino will remain offline until the investigation is completed and its hot wallets have been replenished.

Blockchain security firm Scam Sniffer identified suspicious outflows from Duelbits-linked wallets on Ethereum, BNB Chain, and TRON, later reporting an additional loss from a Bitcoin hot wallet. According to on-chain data, most of the stolen assets were subsequently converted into Ether and consolidated into a single wallet holding approximately 2,234 ETH, worth roughly $6 million at the time. The funds had not moved onward from that address as of publication. Because blockchain transactions are permanently recorded and publicly viewable, any onward movement of that consolidated balance would be visible to researchers and users alike, keeping the stolen funds' path traceable as the investigation continues.

Duelbits said it had taken the site offline as a precaution and was investigating the security incident. The company has not yet disclosed how the private-key access was obtained, nor has it provided a timeline for when the platform will reopen — two details that users and security researchers will be watching as the investigation progresses.

The incident underscores the security risks associated with hot wallets, which remain connected to the systems used to process customer transactions. Such wallets are commonly maintained by exchanges and gambling operators to handle deposits and withdrawals quickly, but their constant connectivity makes them a recurring target for attackers. The standard industry countermeasure is cold storage — wallets kept offline — with operators typically limiting hot wallet balances to the amounts needed for day-to-day deposits and withdrawals. A similar private-key compromise at crypto casino Stake in 2023 resulted in losses of about $40 million.

Duelbits ranks among the top 20 crypto casinos by on-chain deposits, with about $5.7 million across its monitored wallets at the time of the report.

This report was first published by BitcoinKE.