5 months ago 1 min read

Deribit Exchange Wallet Hacked, $28 Million Pilfered


Some of the top cryptocurrency exchanges have been threatened by hackers this year. Deribit, a cryptocurrency exchange, recently experienced one of these hacks.

The hackers broke into the Deribit cryptocurrency exchange's hot wallet and stole USD 28 million. The crypto exchange's hot wallets for BTC, ETH, and USDC were affected by the most recent attack. The cryptocurrency exchange has informed users that their reserves would be used to compensate any losses. Deribit, a crypto exchange, reported:

"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 added that none of the cold storage addresses have been impacted, and all of its clients' assets are secure. In accordance with its policies, Deribit places 99% of its cash in cold storage to shield its customers from such occurrences.

Deposits and Withdrawals in Deribit

Deribit, a cryptocurrency exchange, has also evaluated how it currently handles deposits and withdrawals on the platform. The cryptocurrency exchange is currently stopping withdrawals for users, including third-party custodians, as part of continuous security assessments.

According to the exchange, withdrawals won't be permitted until they are positive they have regained control. Deposits have already been forwarded to be processed. These deposits will be credited to user accounts after the required number of confirmations. Deribit noted:

“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.”

Deribit also claimed that its insurance fund was completely secure and that it would take care of any damages. The cryptocurrency exchange added that it is now in good financial standing and that the recent incident won't have an effect on how it does business.

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