MetaWin Loses $4M in a Hack: ETH & SOL Hot Wallets Suffer

• Crypto casino platform MetaWin loses $4 million from hot wallets in Ethereum and Solana.
• The hackers exploited the ‘frictionless’ withdrawal system and drained the funds.
• Blockchain sleuth ZachXBT tracked the stolen funds to Kucoin and HitBTC service.

Crypto casino platform MetaWin has become prey to a phishing attack, losing nearly $4 million in tokens, connected to hot wallets in Ethereum and Solana. This has raised concern over the security of hot wallets in the world of blockchain and decentralized finance (DeFi).

According to MetaWin CEO, Richard Skelhorn, the hackers attacked the hot wallets via the ‘frictionless’ withdrawal system, which prompted the platform to hold up its withdrawals. Blockchain sleuth ZackXBT tracked the funds to Kucoin and a HitBTC service. Further, it highlighted that nearly 115 addresses were attached to the exploit. 

As Skelhorn had covered some of the hacked amounts from his funds, he said,

I just emptied my piggy bank. We’re not gonna dwell on it. We keep building. We will make some internal adjustments to keep the players happy.

After the security breach, withdrawals were temporarily suspended for a while. However, at the time of writing, the CEO claimed that nearly 95% of the withdrawals were restored to the platform’s customers.

Unlike cold wallets, hot wallets require the constant use of the Internet. Due to this, it becomes an easy target for scammers and is more vulnerable to malware and other viruses. 

The MetaWin hack has increased the concern about cybersecurity in the sector. In addition, the attack on high-risk wallets like Ethereum and Solana highlights the increased interest of hackers on such wallets. 

The MetaWin hack is the latest in a series of cybersecurity breaches in the cryptocurrency space. On October 16, Radiant Capital, a lending platform, was exploited for a staggering $58 million with the attacker gaining unauthorized access to multiple private keys associated with the platform’s multisignature wallet.

Overall, the hack has emphasized the increasing crypto-related threats in the industry which has lost more than $130 million, with top firms like Binance, Alameda Research, and FTX falling victims to scams.

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