Hackers Drain $28 Million Worth of User Funds on Deribit

This year some of the leading cryptocurrency exchanges have been facing the menace of crypto hacks. In the latest development, crypto exchange Deribit has faced one such hack.

The hackers have compromised the hot wallet of the Deribit crypto exchange and managed to steal USD 28 million. The latest hack has impacted the BTC, ETH and USDC hot wallets of the crypto exchange. However, the crypto exchange has assured they would be covering the losses from their reserves. Crypto exchange Deribit noted:

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

The exchange further noted that all of its clients’ assets are safe and no cold storage addresses have been affected. As per Deribit’s policies, the company puts 99% of its funds in cold storage to protect its users from such events.

Deribit Deposits and Withdrawals

Crypto exchange Deribit has also appraised how it is dealing with deposits and withdrawals on the platform as of now. Currently, the crypto exchange is conducting ongoing security checks to halt withdrawals for users including third-party custodians.

The exchange said that it will only open withdrawals after they are 100% sure of regaining control. Deposits have been already sent for processing. After the required number of confirmations, these deposits will be credited to the user 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,” said Deribit.

Deribit also said that its insurance fund is absolutely safe and the company will themselves cover the losses. The crypto exchange also said that it is currently in a sound financial position and that the recent event won’t impact its operations.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.