Crypto Casino Caught in 31M ETH Shortfall: Bounty of $500K for Hacker’s Hideout!

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Theft Gone Wrong: BC.Game Offers $500K Bounty After Hacker’s $31M <a href="https://minority-mindset.com/eth-usd/">ETH</a> Bet Backfires

Key Highlights

  • A hacker exploited a vulnerability in one of BC.Game’s third-party integrated games, stealing approximately $4.3 million in cryptocurrency funds.
  • The attacker used part of the stolen funds (~$1.7M USDC) to open a heavily leveraged short position on Ethereum worth ~$31 million. The trade was liquidated as ETH price rose, resulting in ~$1.53 million in losses.
  • BC.Game publicly identified the hacker’s wallet address and announced a $500,000 USD bounty for information leading to identification or asset recovery, asking the community to help trace the funds.

BC.Game, a well-known crypto casino, has revealed the online wallet address it believes belongs to the hacker who recently attacked its platform. Interestingly, the hacker then experienced significant losses while trading Ethereum with borrowed funds.

The situation started when the digital address 0xA5e…80cA received about 1.7 million USDC. BC.Game says this money was stolen due to a security flaw in one of the games it uses from another company. The total amount taken in the attack was reportedly $4.377 million.

Instead of simply taking the money, the attacker used it to make a large bet that the price of Ethereum (ETH) would fall. They opened a significant “short position” with high leverage, essentially profiting if the price went down, as reported by the on-chain transaction monitor EyeOnChain on X.

Things moved quickly! About 19 hours ago, a wallet (0xA5e4F8141Cb2759CeA58F28cF2d0AB21b98580cA) received $1.7 million in USDC and immediately opened a large short position on Ethereum – betting around $31 million that the price would fall. It was a significant and confident move, but unfortunately, the price of Ethereum didn’t go down as expected.

— EyeOnChain (@EyeOnChain) March 4, 2026

The hacker initially held around 15,457 ETH, worth about $31 million. As the price of ETH increased, their short position began to lose money through partial liquidations, reducing their available margin. Over approximately 20 hours, their $1.7 million holdings decreased to around $171,000, resulting in an estimated loss of $1.53 million.

BC.Games catching the trade

After seeing a post from EyeOnChain, BC.Game publicly identified the wallet on X (formerly Twitter), claiming the funds came from illegal activity. They then announced a $500,000 reward for anyone who can help find the person responsible or recover the stolen money.

This address is linked to a hacker who stole money through illegal activities. They took advantage of a weakness in a game to fraudulently earn $4,326,700 from BCGAME.

BCGAME is now offering a reward to anyone who can provide information, worldwide.

— BC.GAME (@bcgame) March 5, 2026

As an analyst following this situation, I’ve noted that BC.Game has publicly shared an invite code – MMREFCSI – which appears to be connected to the recent exploit. They believe this code could be a key piece of information for investigators or anyone with relevant details. They’ve essentially put out a global call for help, offering a reward to anyone who can provide leads related to the address involved, and are actively working with both their partners and blockchain forensics experts to investigate.

Risks in the crypto gambling space

This event shows that crypto gambling platforms still face significant risks, especially when using games from other companies. Even if the main games are designed to be fair, these integrations can create vulnerabilities. What’s more, stolen money frequently ends up in risky investments like DeFi or perpetuals trading – a common trend in past hacks where attempts to quickly profit often lead to rapid losses.

When the situation became widely known in the crypto world, well-known researcher ZachXBT asked BC.Game to review their direct messages for any possible evidence. Meanwhile, some people made light of the situation, calling it “bounty week,” while others expressed concerns about whether payouts would be honored.

BC.Game, a casino platform popular for its support of over 100 cryptocurrencies and prominent Web3 advertising, has dealt with past concerns but emphasizes its robust security measures, including two-factor authentication and regular audits. While the platform hasn’t revealed details about a recent security issue – like what caused it or which game was affected – it’s likely to prevent others from exploiting the same weakness as they work to fix it.

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2026-03-05 14:29