Crypto Casino Metawin Hacked for $4M+ Due to Withdrawal System Exploit

Crypto casino Metawin recently faced a security breach, resulting in a loss of over $4 million, per blockchain investigator ZachXBT. 

According to Metawin CEO Richard “Skel” Skelhorn, the hack targeted the platform’s withdrawal mechanism, which was designed for swift transactions. This “frictionless withdrawal system” allowed the hacker to access and drain funds from hot wallets tied to Ethereum and Solana. 

As Skelhorn confirmed, this exploit led to the immediate suspension of withdrawals to prevent further losses. The platform has since re-enabled withdrawals for about 95% of users after securing its systems.

Hot wallets, which are more vulnerable due to their continuous online connection, proved to be an entry point for the hacker’s operation.

Transferring assets into mixed or nested accounts further distances them from their original source, making it difficult to trace them.

The identity and motivation of the hacker remain unknown. 

Immediate Platform Response and User Impact

In response to the hack, Skelhorn assured users that his team is working tirelessly to fortify platform security. He acknowledged the incident on Metawin's Discord, confirming that authorities have been contacted and that the platform is making "internal adjustments" to prevent similar incidents. 

Crypto Security Incidents on the Rise

Exploits accounted for the greatest share of stolen assets, with $127 million. This figure represents a slight increase from September but a notable decrease from the $324.7 million lost to hacks in May.

Among recent incidents, the Radiant Capital hack stands out as the largest, with the lending protocol losing over $50 million in assets. Other notable attacks include a $36-million phishing incident targeting a high-value investor and a $13-million hack on M2 crypto exchange.