Nearly 230 ETH, linked to a recent Coldcard hardware wallet exploit, are reportedly stuck in Duel Casino’s hands. Despite clear ties to the hack, the gambling platform has refused to freeze the funds without official law enforcement confirmation, sparking sharp criticism from Galaxy Digital’s Head of Research, Alex Thorn.
Stolen Ethereum Moves to Gambling Platform
Cybercriminals behind the Coldcard exploit have moved stolen bitcoin and Ethereum through various channels, including Duel Casino. When Thorn flagged the issue publicly, Duel Casino responded by demanding police verification before taking any action. The platform’s stance rests on concerns about wrongful freezes, as Korra, a Duel representative, explained on social media. According to Korra, freezing funds on the basis of third-party claims could open doors to abuse, so they require proof such as a police report or a signed affidavit from the alleged victim.
Galaxy Digital Denounces Delay as Complicity
Thorn described Duel’s position as unacceptable. He argued that forensic evidence linking the illicit ETH to an active cyberattack should prompt immediate action. Delays for official law enforcement reports risk letting criminals cash out or further launder the stolen assets. Thorn emphasized that unless Duel freezes these assets now, the company becomes an enabler of theft through inaction.
The clash highlights tensions between platform responsibility and due legal process in crypto crime cases. Previously, concerns about Coldcard’s vulnerabilities surfaced in analyses like the Kraken security chief’s report, underscoring ongoing risks in hardware wallet security.
This article is for informational purposes only and does not constitute financial advice.
