Metawin Hack: How Hackers Exploited the Crypto Casino's Frictionless Withdrawal System to Steal $4 Million

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.

Cryptocurrency platforms are a prime target for hackers, and 2024 is no exception. Despite the year coming to a close, these bad actors show no sign of slowing down.

In the latest incident, a crypto casino called Metawin was hit with a $4 million hack. Here's how investigators say the funds were stolen from Metawin's Ethereum and Solana wallets.

Hackers Hit Crypto Casino Metawin in $4 Million Exploit

Blockchain investigator ZachXBT revealed on his Telegram channel that the hackers used 115 Ethereum and Solana wallet addresses for the exploits.

According to the investigator, the hackers exploited the protocol's frictionless withdrawal system by placing a large number of withdrawal orders consecutively, which helped them bypass the platform's security checks.

Both frictionless withdrawals and hot wallets present a security challenge for crypto platforms. While making transactions more convenient, they also expose users' funds to a higher hacking risk.

“So far the stolen funds have been transferred to Kucoin and a HitBTC nested service,” ZachXBT explained.

Metawin's Response to the Wallet Hack

In response to the hack, Metawin's CEO, Richard Skelhorn, announced several measures to protect users and restore confidence.

Firstly, the platform took immediate action to halt withdrawals, allowing the team to address the risk and prevent further losses.

Moreover, Skelhorn assured the users that anyone who lost funds would be made whole. In a statement on the platform's Discord server, he promised to use his own funds to recover the $4 million in losses.

He also revealed that the platform is working with law enforcement to recover the stolen funds.

Despite these measures, the hack highlights the risks of storing user assets on hot wallets, as they are connected to the internet and pose an increased threat of being hacked.

On the Flipside

Why This Matters

The Metawin hack showcases the risks of storing assets in hot wallets and the specific accessibility features. While these features are designed to enhance user convenience, they also inadvertently make hacking easier.

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