The crypto industry has once again landed in soup and came under severe scrutiny as digital security threats continue to grow with each passing day.
To add to the ladder, Metawin, which is a well-known crypto casino recently suffered a significant loss when crypto hackers exploited the platform’s “frictionless withdrawal system.” They attacked Metawin to drain tokens from his Ethereum and Solana hot wallets.
Metawin CEO, Richard “Skel” Skelhorn confirmed the hack in the early hours of Sunday and noted that the attack has caused the platform a sum of over $4 million.
Blockchain analyst ZachXBT is now working with Skelhorn and helping him to track down the stolen funds. This involves uncovering at least 115 addresses and all of them are linked to the hacker. It is being said that all of this is part of an elaborate hack and it has raised concerns.
The Growing Hacks of Crypto Wallets
There is a growing concern in the crypto industry that should be addressed immediately. This year, there has been a rise in high-profile vulnerabilities in crypto wallets and protocols. These hacks target not just crypto wallets but also exchanges directly. This is leading to people opting out from investing their money in the industry.
On-chain investigator ZachXBT revealed that the stolen money was transferred to Kucoin and a HitBTC nested service, both of which are frequently used by scammers for laundering schemes and asset hiding.
According to the report, the thief spread the wealth over 115 different addresses. This technique shows not only technical proficiency but also careful design. However, despite all the tracking, the hacker’s identity remains unknown, as does the reason for the attack.
This recent breach happened just a few weeks after another high-profile attack on Radiant Capital, a cryptocurrency lending platform, which occurred on October 16. An attacker then managed to steal $58 million from Radiant Capital by breaking into the platform’s multi-signature wallet.
In another high-profile case, an Indian exchange WazirX was hacked through the Safe Multisig wallet, stealing $234.9 million worth of assets. Transactions linked to Tornado Cash, which is a strictly privacy-oriented protocol, rendered the funds untraceable and the hacker unidentifiable.
The Worrying Trend in the Crypto Industry
The occurrence of such incidents signifies a troubling trend within the cryptocurrency space. While hot wallets allow frequent transaction conveniences, these always remain especially prone to attacks due to their constant interaction with the internet.
Though multi-signature wallets were traditionally regarded as a strong security alternative for safeguarding funds, they are increasingly found vulnerable, particularly when hackers obtain the necessary keys.