How to navigate crypto theft in iGaming

At the AIBC Stage during SiGMA Asia 2025, the panel How Players and Operators Can Lose & Recover Stolen Crypto in iGaming brought together cybersecurity and blockchain forensics experts to discuss crypto theft, real-world threats, forensic tracking and the emerging toolkit for digital asset recovery. With speakers including Dmitrii Sandzhiev, CBDO at Match Systems, Kris Galloway, Head of iGaming Product at Sumsub and Joe Zhou, CEO of Beosin, the session promised a deep dive into both the problem and the path forward.

As the iGaming world increasingly embraces crypto for speed, transparency and user autonomy, it also opens the door to a darker side, such as theft, scams and insider breaches. The decentralised nature of blockchain can empower players but when things go wrong, recovering stolen funds becomes a complex and often misunderstood journey.

The message was clear, even with advanced security systems, trust remains the weakest link. “72% of crypto fraud starts with social engineering,” explained Kris, noting that most breaches originate from someone familiar “a friend, a trusted colleague, even an ex-partner.” You can have the best tech stack, but human vulnerability remains a key threat.

Kris underlined the growing sophistication of digital deception “With how quickly AI is progressing, it becomes increasingly scary what fraudsters can do.” Yet, AI is also the industry’s strongest defence. Joe noted “A lot of patterns in money laundering are similar. Our AI system is designed to detect this behaviour.” By using machine learning, Beosin’s system can evaluate if a theft is linked to organised crime, trace attacker wallet addresses and even automate blockchain verification reports.

AI’s strength lies in anomaly detection and behaviour prediction. “26% of fraud happens at onboarding, but 75% happens after,” Kris pointed out. “We’re using AI to understand how players behave, to be ahead of the arms race, and predict it before it happens.” Fraud prevention today goes beyond transactions, it includes betting patterns, user interactions and real-time monitoring across platforms.

But prevention is only half the battle, recovery is equally critical. In 2024, just 8% of stolen crypto was recovered. Acting fast is key, “Acting quickly is the most important thing you can do,” Kris stressed. When an incident occurs, the response includes tracing funds, labelling addresses, and notifying all crypto exchanges to freeze assets before they can be laundered.

Joe highlighted the potential for negotiation. It’s a surprising but increasingly common method, leveraging the visibility of blockchain to track funds and pressure returns. The Lazarus Group alone was responsible for recovering $41 million in stolen funds last year proving the stakes are higher than ever. But despite the tech arms race, Joe reminded the audience, “Don’t be too overconfident, even I’ve been scammed. We’re all human.”

Ultimately, crypto theft in iGaming isn’t just a tech issue, it’s a trust issue. The more prepared operators are, from robust KYC to AI-driven transaction analysis, the better they can protect users and prevent massive losses.

As Kris put it “It’s a constant arms race between fraudsters and operators  but we’re always working in the background to shut these things down before they become mainstream.” For platforms serious about crypto, digital security isn’t optional, it’s foundational. As crypto adoption grows within the iGaming sector, the stakes are getting higher, for players, operators, platforms and regulators. 

Want to stay ahead of the threats and protect your platform or wallet? Keep following for expert insights, live updates from SiGMA Asia 2025 and deep dives into the tools and tactics shaping the future of secure crypto gaming.