MetaWin Crypto-Based Online Casino Loses $4 Million During Hack

A cryptocurrency-based online casino lost $4 million as a result of computer attacks.

MetaWin Casino’s chief executive officer Richard Skelhorn confirmed on Sunday that the casino was drained of $4 million from “hot wallets.” These are cryptocurrency wallets that are used to temporarily store, send, and receive crypto payments.

The hackers stole from MetaWin’s Ethereum and Solana supply by taking advantage of the company’s withdrawal protocol.

Online attack

Skelhorn confirmed the attacks in a message shared with the company’s Discord channel.

“Today, we experienced an attack where an exploiter was able to withdraw a significant amount from our hot wallets by taking advantage of our frictionless withdrawal system,” he said. “We’re in the process of topping up wallet balances now. 

“We’ll also be implementing additional security control for new users, while also exploring ways to maintain a flexible and seamless experience for our trusted community,” Skelhorn added.

MetaWin was forced to temporarily disable withdrawals for its users, though it quickly reopened the functionality for the majority of its player base.

According to Telegram user ZachXBT, a blockchain investigator who reported the attack before Skelhorn’s announcement, the hackers gained access to 115 wallets. They bypassed the company’s security measures thanks to the previously mentioned withdrawal system, which takes less time to complete but is also less secure than normal transitions.

“In short… we faced a challenge, but we’re learning from it and will emerge stronger,” Skelhorn’s message said. “Thank you for your patience and trust.”

Dangers of offshore gaming

The identity and motive of the attacker(s) are unknown at this time. 

MetaWin’s many offerings include online slot machines, live-dealer table games, baccarat, and NFT-based raffles, among others.

The online casino also has a rewards program, with which customers can qualify for “wagering races” based on the amount of bets that are placed. Qualified players compete for a shot at a weekly jackpot of $40,000.

MetaWin is headquartered in London, though it operates as an offshore casino based out of Anjouan, a volcanic island in the Comoro Islands to the east of mainland Africa. As such, it is not a licensed U.S. casino, meaning that neither the company nor any customers affected by the hacks are liable to compensation. 

Skelhorn made his money and name in the gaming industry by founding the Atemi Group, which specialized in paid media and social media marketing.

He sold the company to Better Collective, which also owns The Action Network, SportsHandle, and VegasInsider, for €44 million ($48.1 million) in 2020.

Although players rarely face punishment, offshore gambling is illegal in America.