Leading Casino App on EOS Loses $200,000 on Smart Contract Exploit

Smart contract exploits are in no way limited to Ethereum, and affected what is considered one of the safest online casinos on EOS.

EOSBet, a popular decentralized casino app that is running on the EOS platform, has suffered a hack attack, with some 40,000EOS, worth around $200,000 at current prices, diverted from one of its operational wallets. The EOSBet team only gave general details of the exploit, while investigations are ongoing. A recent Reddit thread confirms the hacking, and gives a glimpse of further problems for EOS, including testnet attacks and spam.

The EOSBet team is currently unrolling security updates, changing the payout and storage mechanisms.

“Effective now, we’ve moved ~75% of the bankroll out of our hot wallet and into reserves. Simultaneously, we’ve increased the maximum win size from 1% to 4% of the bankroll in order to keep the maximum bet sized unchanged,” EOSBet explained in a Reddit post.

EOSBet is one of the most active decentralized applications (dApps) on the EOS platform with 608 users for the past 24 hours. It is the second most active app in terms of transactions, with more than 1.3 million transactions in seven days. The high rate of transactions has led some to believe that despite the very small user base, the dApp is seeing artificial or spam transactions.

Just a few days ago, EOSBet looked astonishing to those comparing it to the Ethereum dApps:

https://twitter.com/markjeffrey/status/1039680361054097408

However, the logic of smart contracts is independent of the platform, and without rigorous audits, it can harbor multiple risks and possibilities for an exploit. Gambling on the platform continues, but smart contract security remains an issue for all crypto projects.

Immediately after the hack, EOS prices remained stable above $5, but as the news spread, EOS lost steam. On Tuesday morning (UTC), EOS quickly moved down from $5.33 to $4.79 within hours. As of 08:00 UTC, EOS traded at $4.90, down around 8% on a daily basis.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.