Crypto Exchange Deribit Suffers Hack, $28,000,000 in Bitcoin, Ethereum and USDC Vanish After Wallets Compromised

A crypto exchange platform has been hacked to the tune of millions of dollars worth of Bitcoin (BTC), Ethereum (ETH), and stablecoin USD Coin (USDC).

Digital assets exchange Deribit tells its 52,000 Twitter followers that bad actors have made away with $28,000,000 worth of BTC, ETH, and USDC after compromising a crypto wallet.

However, Deribit notes that no client funds are in danger and their losses would be covered by the firm’s reserves. The crypto exchange also says that it keeps the overwhelming majority of its customers’ digital assets in cold storage, which was not affected by the hack.

“Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves. Our hot wallet was hacked for $28 million earlier this evening just before midnight UTC on 1 November 2022.

Client assets, Fireblocks or any of the cold storage addresses are not affected. It’s company procedure to keep 99% of our user funds in cold storage to limit the impact of these type of events. The hack is isolated and quarantined to our BTC, ETH and USDC hot wallets.”

The crypto exchange then says because of this issue, they have temporarily paused customer withdrawals, adding that while deposits will process during this period, they recommend clients not deposit anything until being told to do so.

“We are performing ongoing security checks and have to halt withdrawals including third-party custodians Copper Clearloop and Cobo until we are confident all is safe to re-open. Deposits already sent will still be processed and after the required number of confirmations, they will be credited to accounts.

We have raised the minimum number of confirmations for the moment causing a delay in crediting funds. Until we open wallets again we request you not to send new deposits.”

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Featured Image: Shutterstock/Tatkhagata