Could hackers now turn their attention to bitcoin gambling sites?

Discussion in 'General Bitcoin Gambling Discussion' started by Humble Servant, Jun 23, 2016.

  1. Humble Servant

    Humble Servant Active Member Staff Member

    Security at most bitcoin exchanges has greatly improved since the fall of Mt. Gox. Most bitcoin exchanges now use cold storage, multi-sig and proper key ceremonies to ensure that their bitcoin, ether or litecoin do not disappear in a puff of smoke. Bitcoin users are also far less likely to leave their bitcoin on exchanges and instead opt for secure hardware wallets like Trezor and KeepKey.

    We shouldn't forget that hackers need to make a living too, which makes me question whether they will now turn their attention to some of the big name poker rooms, casinos and sportsbooks who have now entered the btc world. Major internet gambling operators like Bovada, Americas Cardroom, 5Dimes and BetOnline now process large amounts of bitcoin every day for their players yet one has to question whether they have the necessary security architecture in place.

    Could the next Mt. Gox be a major online gambling site?
    Last edited: Jun 27, 2016
  2. uglymug

    uglymug Member

    If fear that many bitcoin gamblers will need to have money stolen from them before they will take security seriously. Gambling with btc has many advantages but unfortunately you can't phone up a customer support centre when things go wrong.
    Frank Muller likes this.
  3. Lance

    Lance Member

    hackers are already doing ddos attacks on many bitcoin gambling sites and demanding they pay a ransom in order for them to stop.
    Frank Muller likes this.
  4. 4TheWin

    4TheWin Member

    A hacker has already stolen one million dollars worth of btc from Primedice last year so I think have already turned their attention to btc internet gambling sites.
  5. Humble Servant

    Humble Servant Active Member Staff Member

    I know bitcoin only gambling sites like Fortune Jack and Nitrogen Sports use 2-Step Authentication but does anyone know if bitcoin friendly gambling sites like 5Dimes or Bovada also employ some kind of 2 step verification?
  6. EthHead

    EthHead Member

    Any bitcon gambling site that does use 2 Factor Authentication is asking for trouble. I guess sites like Bodog and Americas Cardroom will need to get some bitcoin stolen before they'll wake up to the dangers of hacking.
  7. Humble Servant

    Humble Servant Active Member Staff Member

    It looks like I spoke too soon here. The Bitfinex hack that stole 120,000 bitcoin proves that hackers can still get past the most advanced security precautions of major crypto-currency exchanges.
  8. uglymug

    uglymug Member

    i presume gambling sites need to use exchanges to sell all the bitcoin they receive. if that's the case then they have double the exposure and risk.
  9. i wouldn't be surprised if gambling sites become sources of large OTC (over the counter) orders of bitcoin. if you're an investment fund or billionaire who wants to buy large quantities of btc without affecting the price then buying them from bovada or americas cardroom might be a good option.
  10. Humble Servant

    Humble Servant Active Member Staff Member

  11. Freddy

    Freddy Member

    After the whole Bitfinex debacle, I really hope gambling sites aren't using Bitgo to secure their coins.
  12. Kaboom

    Kaboom Member

    i suspect if a major gambling site like bovada or 5dimes got hacked we would never hear about it. they would have to absorb the losses because they would lose all their players if there was a rumour that they were bankrupt.
  13. Toast

    Toast Member

    My guess is that major offshore bookmakers don't touch the cryptocurrency themselves. There are probably bitcoin payment processors who they hire that take on the risk.
  14. NKOTB

    NKOTB Member

    Have any exchanges been hacked in 2017? Things seem to have gotten quieter since the Bitfinex hack.
  15. Humble Servant

    Humble Servant Active Member Staff Member

    None that I am aware of but there is a fear that some crypto exchanges are operating as a fractional reserve and may be keeping quiet hack in the hope that they can trade their way back to profitability.
  16. Gooch

    Gooch Member

    i'm really surprised that none of the major bookies like bodog or betonline haven't been hacked yet. i wonder do they hold their own private keys or do they have cryptocurrency payment processors?
  17. Humble Servant

    Humble Servant Active Member Staff Member

    While there is little evidence that hackers have turned their attention to regular bitcoin casinos, bookies or poker rooms, they do seem to be hacking gambling sites built on smart contracts. Just in the past month there have been couple of hacks of EOS casinos that have resulted in the loss of hundreds of thousands of dollars.
  18. Kaboom

    Kaboom Member

    It's my understating that cryptocurrency gambling sites use third party payment processors so they don't actually hold a lot of crypto themselves. I've seen various bookmakers say that they require KYC / AML documents when some players request payouts because their payment processors asked for them.
  19. Humble Servant

    Humble Servant Active Member Staff Member

    This is correct, I've often noticed that if one offshore bookmaker experiences delays in withdrawals, a number of other sites also have problems so they are likely using the same company.

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