Duelbits Hit by Hot Wallet Breach; About $7 Million Stolen After Suspected Private Key Exposure
AI Market Summary
Duelbits reported an ~$7m hot-wallet theft across Ethereum, BNB Chain, Tron and Bitcoin, likely tied to private-key compromise, prompting the platform to suspend operations. On-chain flows show rapid consolidation with most proceeds converted into ETH and parked in a new address (~2,234 ETH). While the incident is idiosyncratic and management claims user funds are safe, it reinforces operational and custody risk across centralized crypto venues.
Impact level
● Medium
Affected assets
ETH/USDT-0.40%
AI Insight · ETH/USDTAI Insight
▼ Bearish
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Duelbits has suspended operations after an apparent compromise of its hot wallets led to losses of about $7 million, a breach believed to involve leaked private keys.
Gold财经 cited a Sept. 25 CoinDesk report saying security firm Scam Sniffer first flagged the incident. The firm said assets were moved from Duelbits’ hot wallets on Ethereum, BNB Chain and Tron to newly created addresses. An additional 8.1 BTC was also taken from the platform's Bitcoin hot wallet.
On-chain data indicates the attacker quickly transferred 836 ETH, roughly 593,000 USDT, 97,000 USDC, 31,500 DAI and 12.4 billion SHIB. Most of the proceeds were swapped into ETH and consolidated into a new address holding about 2,234 ETH (approximately $6 million). As of publication, the funds had not been moved further.
Cofounder Joe confirmed the roughly $7 million loss on X, said "user funds are safe," and noted the platform will remain offline until the investigation concludes and the hot wallet is replenished.
