Crypto casino and sportsbook Duelbits remained offline Friday after co-founder Joe reported a roughly $7 million hack, leaving customers unable to withdraw while the operator rebuilds its infrastructure.

The platform said customer balances are unchanged and that withdrawals will resume once the site reopens. In a 2:28 p.m. ET update on Sept. 25, Joe said the team needed "a little more downtime" to secure the platform and replenish its hot and cold wallets. He confirmed customer balances were intact and said users would be able to withdraw when the site came back online.

The shutdown followed transfers that security researchers flagged as suspicious early Thursday. Scam Sniffer identified Duelbits hot wallets on Ethereum, BNB Chain and Tron and described a "suspected private key compromise." Duelbits' public updates have not explained the root cause of the incident.

What do on-chain records show?

A review of Ethereum and BNB Chain transactions documents seven transfers from the Duelbits-associated address beginning 0x014435 to the flagged recipient address, 0xA77e24, executed between 4:59:55 a.m. and 5:02:47 a.m. ET on Sept. 24.

The Ethereum leg of the transfers comprised:

• 836 ETH
• 593,430 USDT
• 96,805 USDC
• 31,515 DAI
• Approximately 12.4 billion SHIB

On BNB Chain, the same wallet sent 209 BNB and roughly 552,762 Binance-Peg BSC-USD tokens. Using explorer-quoted prices on Friday afternoon, those seven transfers were worth approximately $3.8 million. That figure covers only the two-chain subset and does not account for the full $7 million loss Joe reported, which implies additional exposure across other chains — consistent with Scam Sniffer's identification of a Tron hot wallet.

Security firm PeckShield said the recipient address consolidated the stolen funds into roughly 1,588 ETH and 31,500 DAI. On-chain records show the assets then moved to an intermediary wallet, which swapped 31,515 DAI for about 11.78 ETH after the swap fee. The intermediary subsequently forwarded ether to address 0x8dB9D7…C306.

Etherscan displayed a balance of approximately 2,333.64 ETH, worth $6.28 million, at that destination on Friday afternoon. The wallet has also received funds from other addresses, so its entire balance cannot be attributed to the seven Duelbits transfers.

Is this Duelbits' first incident?

No. CertiK reported approximately $4.6 million stolen from Duelbits in February 2024 in what the security firm described as a possible private key compromise. The repeat pattern points to a persistent operational weakness in how the operator manages custody of signing keys for its hot wallet infrastructure across multiple chains.

For the current incident, Joe said Thursday evening that the team was rebuilding its deposit and withdrawal servers and expected the site back within roughly 15 hours. Friday's extension of the downtime came without a replacement reopening time, leaving customers in limbo for a second day.

What are the operational consequences?

The incident forces Duelbits to rebuild the server stack that handles deposits and withdrawals from the ground up, replenish drained hot and cold wallets, and restore customer confidence after a second key-compromise event in under two years. For a gambling platform, custody of customer balances is the core product infrastructure; an extended outage halts all betting and payout activity.

The consolidation of stolen funds into ETH also matters for any recovery effort. Ether held at a single identifiable address is traceable but liquid, and attackers who convert stablecoin holdings into ETH via decentralized swaps reduce the number of intermediaries — exchanges with know-your-capital controls — that could freeze the funds. The $6.28 million balance visible at the destination wallet gives investigators a concrete target, though attribution of the wallet's full balance remains unresolved.

Duelbits has not disclosed what caused the suspected private key compromise, whether any third party is auditing the rebuilt infrastructure, or whether it will publish a post-mortem. Customers await a firm reopening time, and Joe's initial 15-hour estimate has already slipped.