EOSBets Gets Hacked for $250,000 EOS, Admits Fault

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An EOS-based gambling platform has exposed how fragile balance in the world of blockchain and crypto-powered iGaming and sports betting operators is. Earning your customers’ trust at a time when both industries have been coming under a lot of heavy fire, not to mention the breaches in security, is definitely a mean feat. Let’s see what has happened precisely.

EOSBet and Containing the Storm

EOSBet online casino has been the victim of a hacker attack leading to the theft of $250,000 worth of the casino’s own currency, the EOS coins. Taking to Reddit to reveal the latest developments, the platform announced that it contracts had been compromised, and even though the developers had reacted accordingly, they couldn’t have prevented the theft of the missing currency.

The statement finished on an upbeat note, with the announcer saying that the breach has been patched up and that the platform is fully operations. The hacker(s) managed to bend the system to their whim, allowing themselves to place a number of bets. While losses didn’t generate anything at all, any win was rewarded with EOS.

EOSBet didn’t chalk up this to the work of nefarious parties, which are clearly involved. Instead, the platform did something few companies that expect to stay in business do – they admitted that before the attack occurred, the casino had still been struggling to patch up a particular safety breach in the smart contract system. Meanwhile, developers have been making sure to relocate their money to back-up storage facilities.

Hacking crypto platforms has not been exactly without precedent. The heist of Coinbase has been one of the most earth-shattering moments for the entire industry.

Looking Back in the Past of an Operator

There have been some concerns about the legitimacy of EOSBet. Recently, the platform paid out $600,000 to a customer who had reportedly won the amount fairly. And yet, it does strike as remarkably bizarre for a project of any stature to be paying out with such generosity. According to The Next Web, an online publication, EOSBet was compromised, but the company denied even the faintest suggestion that this had been the case.

EOS has not been exactly the most expensive cryptocurrency out on the market, but the fact that it can be converted into other crypto tokens or even FIAT money with little to no charge is indicative in its own right. EOS’s value is somewhat $5, dropping nearly five-fold from its April levels.

Meanwhile, regulators have been increasingly open to the idea of having the technology empower gaming solutions. The Malta Gaming Authority has been toying with the idea of developing such a solution.

Understanding the Implications for the Company’s Credibility

Given the recent unlikely payouts whereby a user notched up a jackpot 24 times within a single hour and the claims that this was a legitimate victory, EOSBet is dithering over the edge of a pit climbing out of which would be nearly impossible.
Acquiescing to some security breaches but trying to masquerade others as genuine events that haven’t been tinkered with is not a winning strategy for any operator – established and least of all as fresh one as EOSBet.

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