- Metawin reveals a $4M hack of Ethereum and Solana hot wallets.
- Investigators revealed how the hackers exploited the wallets.
- Hot wallets present unique risks for crypto platforms.
The high-tech world of crypto is constantly at risk of hacking. 2024 is no different, with a series of high-profile incidents. Even as the year is coming to an end, hackers are not slowing down.ย ย
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Recently, a crypto casino, Metawin, suffered a $4 million breach. Investigators revealed how they stole the funds from Metawinโs Ethereum and Solana wallets.ย
How Hackers Exploited Metawin
The latest crypto hack struck a popular crypto casino, Metawin. On Sunday, November 3, the companyโs CEO, Richard Skelhorn, announced an exploit of its platformโs hot wallets. Skelhorn revealed that hackers stole over $4 million from the platform by exploiting the protocolโs frictionless withdrawal system.ย
Blockchain investigator ZachXBT revealed on his Telegram channel that hackers used 115 Ethereum and Solana wallet addresses for the exploits. Using the frictionless withdrawal system, they placed a large number of withdrawal orders consecutively, bypassing the platformโs security checks.ย
Both frictionless withdrawals and hot wallets present a security challenge for crypto platforms. While making transactions more convenient, they also expose usersโ funds to hacking risk. “So far the stolen funds have been transferred to Kucoin and a HitBTC nested service,” ZachXBT explained.
Metawinโs Response to the Wallet Hack
Metawinโs CEO, Richard Skelhorn, announced immediate action to protect users and restore confidence in response to the hack. For one, the platform immediately halted withdrawals, enabling the team to address the risk and prevent further losses.ย
Skelhorn also assured the users that anyone who lost funds would be made whole. In a statement on the platformโs Discord server, he promised he would use his own funds to recover the $4 million in losses. He also revealed that the platform works with law enforcement to recover stolen funds.ย
Despite these measures, the hack highlights the risks of storing user assets on hot wallets. As these assets are connected to the Internet, they represent an increased risk of hacking. This goes much more
On the Flipside
- In May, DMM Bitcoin, one of Japanโs largest CEXs, suffered the third-biggest hack in crypto history. The attack cost its users $308 million.
- North Korean hackers were among the most prolific hacking groups in recent years. Some of their hackers even infiltrated crypto firms, posing as IT workers.
Why This Matters
The Metawin hack reveals the risks of storing assets in hot wallets and of the specific accessibility features. While these features make life easier for the users, they also make hacking easier.
Read more about crypto hacking:
Hackers Steal $313.86M in Crypto Across Over 10 Incidents in August
Read more about Jim Cramerโs failed prediction for Solana:
Solana Proves Jim Cramer Wrong, Rises 1,400% Since Critique
