Two Cryptocurrency Casinos Just Got Hacked

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Gambling with cryptocurrencies is an emerging trend in the casino industry that could very possibly dominate a large percentage of the online sector. Thanks to the efforts of great cryptocurrency casino operators, Bitcoin, Litecoin, Ethereum, and other virtual coins are taking online gambling and betting by storm.

But no matter how many operators work hard to maintain a good reputation for the cryptocurrency gambling sector, there will always be those who make slip ups that send shockwaves across the entire cryptocurrency community. One of the most recent examples are two EOS-based casinos which revealed they were hacked by malicious players for significant sums of cash.

$24,000 Stolen In a Fake “Winning Streak”

During the last week, reports came in of two different EOS gambling sites being hacked for over a quarter of a million in US dollars. The first of these was DEOSGames – a decentralized EOS gambling site with games like Blackjack, Roulette, and Lotto.

As revealed on the official Twitter profile of the website, DEOSGames was down last weekend due to a “malicious contract” that exploited the site’s own smart contract. The hack was initiated by a user called “runningsnail” who disguised the theft as a winning streak that made 24 payments of $1,000 each to his/her balance. Apparently, every time the user’s player account deposited 10 EOS coins, it would instantly win a $1,000 jackpot in only half a minute later.

The suspicious success of the player caught the casino’s attention and subsequently it was confirmed that $24,000 in EOS tokens was stolen this way. In the official update on Twitter, the operator called the robbery a “good stress test”.

$236,000 Taken Days after a Suspicious $600,000 Lucky Roll

Shortly after DEOSGames’ hack, another EOS-based gambling site called EOSBet reached out to the online community to notify them of a hack. In a public statement on Reddit, EOSBet revealed that on September 14th its platform and bankroll was breached. During the breach, a total of 44,427 EOS coins were stolen before the site was taken online.

To steal the funds, the unidentified hacker exploited a flaw in EOSBet’s code that allowed him/her to make a deposit without actually sending any coins to the casino. When the player lost, their tokens didn’t have to be transferred to the platform. But when they won, they would get coins to cash out from EOSBet. With this flaw, the hacker was able to siphon $236,000 out of the casino without investing anything at all.

However, what’s really interesting to note is that the hack came days after another user on the same website took home $600,000 in cash after a number of suspicious consecutive wins. As reported by the Next Web, this time a user was able to win the money in only 36 hours after registering by consistently doubling wagers on the casino’s dice games for dozens of times in a row, without losing any rolls whatsoever. Each time the money was wagered, it returned doubled within seconds.

EOSBet is not admitting a hack and saying that the $600K winner was just lucky, raising even more suspicions with cryptocurrency punters. It just goes to show how much more effort EOS casinos have to invest before they reach the level of trust, security, and quality of today’s Bitcoin casino operators.

September 19, 2018: • No Comments

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