A top researcher at Galaxy Digital is calling out Duel Casino for its refusal to block nearly 230 ether allegedly stolen from a victim of the Coldcard vulnerability. Alex Thorn, head of research at the crypto investment firm, said the casino's stance is unacceptable. The funds, worth roughly $400,000 at current prices, are believed to be part of a broader exploit that has been spreading across Coldcard hardware wallets.
Why the casino won't freeze the funds
Duel Casino told Thorn it would not freeze the 230 ETH without evidence directly linking the funds to the hack. The casino's position is that it needs proof before taking action. Thorn argued that the casino should have blocked the address immediately, given the public nature of the exploit and the ongoing threat to Coldcard users. He posted the exchange on social media, drawing attention to the standoff.
The Coldcard vulnerability in focus
The exploit targets Coldcard wallets, a popular hardware wallet brand known for its security features. Details of the vulnerability remain scarce, but it has been actively used to drain funds from victims. The 230 ETH in question is allegedly part of the proceeds from one such attack. Thorn's criticism highlights a broader tension in crypto: exchanges and custodians often face pressure to freeze assets tied to hacks, but they also risk legal blowback if they act without solid evidence.
What happens next
For now, the 230 ETH sits in Duel Casino's wallet. The victim or law enforcement would need to provide proof of the theft before the casino moves. Thorn has not indicated whether he or Galaxy Digital will take further steps. The incident underscores the challenges of recovering stolen crypto when intermediaries demand airtight proof. The ball is now in the victim's court to provide the evidence Duel Casino says it needs.
