A hacker who siphoned funds from crypto casino BC GAME lost part of the proceeds after an unsuccessful leveraged trade on Ethereum.

The theft and ensuing trade

The attacker extracted approximately $4.37 million from the platform before reallocating a portion to margin trading, according to on-chain analysts.

Analysts report the attacker used 1.7 million USDC to open a leveraged Ethereum short valued at $31 million, increasing liquidation risk.

Market movement pushed ether higher, triggering liquidation of the short and erasing roughly $1.53 million of the stolen capital in a single margin event.

Investigation and response

BC GAME announced a reward of $500 000 for information that could identify the attacker or facilitate recovery of remaining assets.

The hacker's wallet has been publicly linked, and on-chain investigators including PeckShield and EyeOnChain are monitoring subsequent transfers and on-chain activity.

How liquidation occurs in leveraged positions

When a leveraged short moves against the trader, margin is consumed and positions can be forcibly closed by exchanges or counterparties to prevent further losses.

Such liquidations often convert collateral to cover the position, which can rapidly deplete accessible funds and leave little recoverable capital.

Ongoing monitoring

On-chain analytics firms continue publishing updates as they track the wallet's flows and interactions in real time, aiming to trace remaining balances and counterparties.

Authorities and recovery teams may combine these traces with off-chain leads submitted under the bounty program to pursue asset recovery or identification.