UK
This week, the company's CEO has admitted that a cryptocurrency-operated online casino was breached.
MetaWin is a digital gaming platform that provides interactive slots, live dealer table games such as blackjack, roulette, poker, and baccarat, as well as nonfungible token (NFT) raffles and draws, alongside various instant-win games.
The MetaWin rewards initiative additionally allows players to participate in daily and weekly “wagering races,” where gamblers are positioned according to their total amount of real money bets placed. The competitions allow players an opportunity to compete for a weekly grand prize of $40K.
The online casino based in London runs offshore under an internet gaming license granted by Anjouan, a small island nation situated off Africa's southeastern coast. MetaWin is not authorized to accept wagers in any US state, yet users engaging with the online casino are unlikely to encounter legal repercussions.
State gambling authorities, nonetheless, persist in warning consumers regarding the dangers of utilizing an offshore casino. It is said that unregulated gaming websites offer little to no consumer safeguards, including the security of their online funds. This week highlighted that point through the MetaWin hack.
$4 Million Taken
Richard Skelhorn, the CEO and founder of MetaWin, announced on November 3 that several “hot wallets” of MetaWin had been compromised. Skelhorn's remarks followed blockchain researcher ZachXBT's post on his Telegram channel regarding a successful breach of MetaWin's Ethereum and Solana hot wallets.
"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,” Skel wrote. “We’ll be implementing additional security controls for new users, while also exploring ways to maintain a flexible and seamless experience for our trusted community.”
Hot wallets are cryptocurrency wallets that remain continuously linked to the internet. Hot wallets serve as short-term key storage and facilitate the sending and receiving of cryptocurrency.
Cold wallets, or storage solutions that maintain cryptocurrency offline in a private setting, are regarded as the safest way to protect digital currency. However, hot wallets are required to carry out transactions for coins such as Bitcoin, Ethereum, Tether, and Solana.
ZachXBT reported that the hackers succeeded in stealing $4 million in cryptocurrency, which was quickly moved to a KuCoin and a HitBTC cold wallet. The online investigator discovered that over 115 addresses were linked to the malicious individual.
For his part, Skel stated he would personally cover the $4 million deficit and had already started "topping off" affected customers.
“In short, today we faced a challenge, but we’re learning from it and will emerge stronger,” Skel concluded.
Expert in Marketing
Skelhorn amassed a significant portion of his wealth by establishing the Atemi Group in 2015. The firm focused on international iGaming lead generation and social media marketing.
In 2020, Skelhorn sold his Atemi Group to Better Collective for €44 million (US$48 million). In the year Atemi was acquired, the company directed over 180K new depositing customers to its worldwide iGaming and online sportsbook affiliates.
Better Collective is a publicly listed company located in Denmark that controls online media brands such as The Action Network, SportsHandle, and VegasInsider.
