Blockchain technology has been redefining the online gaming and gambling industry. However, while the blockchain-based gambling platforms sell ‘security’ and high-speed transaction processing along with anonymity, the fact is gambling on a blockchain-based betting platform is in itself a bigger gamble.
While there have been several instances of crypto gambling sites duping users, a recent addition could be Ethereum-based blockchain betting site Fairwin. The gambling platform has been accused of running a scam.
Clément Lesaege, CTO and auditor of Kleros, claims that he has been doing extensive research on the modus operandi of the gambling platform. He accuses the gambling operator of running a Ponzi scheme, though he doubts if it is intentional or not.
Lesaege also claims to have found a loophole in their contract code. This he says would easily help those on the network to run an escape scam. As such, the users on the network could get the funds diverted to their accounts anytime if they wanted and the investors would be left with no dividends as promised.
Last month, the security of popular blockchain-based gambling platform EOSPlay was compromised and a hacker managed to get away with digital tokens worth $100,000.
EOSPlay is amongst the world’s leading blockchain-based crypto gaming platform with a daily volume of over $314,000. Statistically speaking it is the 8th most popular gambling dApp (Decentralized Application).
According to the reports, the hacker made good of a bug in the game which allowed him to steal 30,000 EOS tokens through the EOS REX service.