Recent Hack on MetaWin Casino Adds to October’s Soaring Crypto Losses
Online casino platform MetaWin is the latest victim in a string of cyberattacks plaguing the crypto industry. On November 3, MetaWin reported an exploit that drained approximately $4 million from the platform’s hot wallets. According to the casino’s CEO, Skel, withdrawals were temporarily halted, but most of the platform’s funds have been restored, with 95% of customer withdrawals re-enabled as of the latest update.
How the MetaWin Hack Occurred
The breach exploited MetaWin’s frictionless withdrawal system, allowing the attacker to siphon funds directly from the casino’s hot wallets, which are wallets connected to the internet for quicker transactions but more susceptible to hacks. Following the incident, blockchain analyst ZachXBT uncovered that the hacker transferred the stolen funds to cryptocurrency exchanges KuCoin and HitBTC using a nested service, spreading the funds across over 115 crypto addresses to obscure their trail.
The attacker’s identity and motives remain unclear, and MetaWin has not yet responded to public requests for additional information.
A Wave of Crypto Cybercrime: October’s Notable Hacks
The MetaWin hack follows a particularly challenging October for the crypto world, with a reported $129 million lost to scams and exploits, according to cybersecurity firm CertiK. The month saw major incidents affecting prominent platforms:
Radiant Capital Exploit
On October 16, lending platform Radiant Capital experienced a $58 million hack after an attacker gained access to private keys for the platform’s multi-signature wallet. This access allowed the hacker to control Radiant’s smart contracts on the BNB Chain and Arbitrum network, draining the platform’s assets.
Phishing Attack via Lottie Animation Library
In another October incident, several decentralized apps (dApps), including 1inch and TEN Finance, fell victim to a phishing scheme exploiting the Lottie Player animation library. The attackers embedded deceptive links within the animation interface, luring users to connect their wallets. Once connected, wallets were quickly drained using the “Ace Drainer” phishing software, which has gained notoriety in the crypto space for its effectiveness in stealing funds.
M2 Exchange Hack
Just days before the MetaWin breach, the crypto exchange M2 lost $13 million after its hot wallets were compromised. Similar to MetaWin, M2’s security issue stemmed from the vulnerabilities associated with hot wallets, which, although convenient for transactions, are prone to remote exploitation.
Hot Wallets: A Growing Security Concern
The recent surge in attacks on hot wallets underscores the need for platforms to reevaluate their security strategies. While these wallets facilitate instant transactions, they remain vulnerable to cyberattacks, exposing platforms to significant financial risk. Cybersecurity firms have emphasized the importance of cold wallets—offline wallets not connected to the internet—for secure asset storage, especially for long-term holdings.
Rising Urgency for Cybersecurity in the Crypto Sector
As cybercriminals continue to target crypto platforms, the industry faces mounting pressure to bolster its defenses. October’s spate of cyber incidents highlights not only the need for tighter security on high-risk components like hot wallets but also the importance of educating users about phishing threats and the risks associated with signing unknown transactions.
With security concerns mounting, the recent MetaWin hack and the events of October serve as stark reminders that cryptocurrency platforms must prioritize robust cybersecurity to protect their users and assets from increasingly sophisticated attacks.
