This week, the chief executive officer has admitted that a cryptocurrency online casino was breached. 

MetaWin is a digital gaming platform that provides engaging slot machines, live dealer games such as blackjack, roulette, poker, and baccarat, NFT raffles and drawings, along with numerous instant-win games. 

The MetaWin rewards initiative additionally allows players to participate in daily and weekly “wagering races,” in which bettors are ranked according to the total quantity of real money wagers they place. The races enable participants to compete for a chance to win a weekly grand prize of $40K. 

The online casino based in London functions offshore under an internet gaming license granted by Anjouan, a tiny island nation situated off Africa's southeastern coastline. MetaWin does not have a license to accept bets in any US state, yet players engaging with the online casino have a minimal likelihood of encountering legal repercussions. 

State gaming regulators, nevertheless, persist in warning consumers about the dangers associated with utilizing an offshore casino. It is said that unlicensed gaming websites offer little to no consumer protections, such as ensuring the security of their online funds. This week demonstrated that point via the MetaWin hack. 

$4M Embezzled 

On November 3, Richard Skelhorn, founder and CEO of MetaWin, announced that certain MetaWin "hot wallets" had been compromised. Skelhorn’s remarks followed blockchain investigator ZachXBT’s disclosure on his Telegram channel regarding a successful hack 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 connected to the internet. Hot wallets serve as short-term key storage and are utilized to send and receive cryptocurrency. 

Cold wallets, or storage systems, that maintain cryptocurrency in an offline personal environment, are regarded as the most secure way to protect digital currency. However, hot wallets are required for trading cryptocurrencies such as Bitcoin, Ethereum, Tether, and Solana. 

ZachXBT reported that the hackers successfully stole $4 million in cryptocurrency, which was quickly moved to KuCoin and a HitBTC cold wallet. The internet investigator found over 115 addresses linked to the malicious individual. 

For his credit, Skel mentioned he would personally absorb the $4 million loss 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.  

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Skelhorn built a significant part 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 firm introduced over 180K fresh depositing clients to its worldwide iGaming and online sportsbook affiliates. 

Better Collective is a publicly listed company situated in Denmark that owns online media brands such as The Action Network, SportsHandle, and VegasInsider.