Hackers hack the hot wallet of the Deribit crypto exchange and withdraw $28 million

At the moment there is no withdrawal available on the platform, but it is possible to make deposits

02.11.2022 - 08:15

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What’s new? On November 1, hackers hacked the hot wallet of cryptocurrency derivatives exchange Deribit and withdrew $28 million from it. Representatives of the platform said on Twitter that customers’ funds are safe, as 99% of their assets are stored in the cold wallet. In this, withdrawals from the exchange have been temporarily suspended.

Deribit hot wallet compromised, but client funds are safe and loss is covered by company reservesOur hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022.— Deribit (@DeribitExchange) November 2, 2022

What else is known about the incident? The company noted that all losses will be covered by its reserves. Deribit has suspended withdrawals from its platform, as well as from the accounts of custodian partners: Cobo Wallet and Copper (the exchange uses its intermediary network ClearLoop). At the time of writing the news, the function is still unavailable.

In this, it is still possible to make deposits, the exchange’s representatives noted that after the verification procedure, they will be credited to customers’ accounts. This will prevent the liquidation of open positions.

Deribit was founded in June 2016 in Panama as a bitcoin trading platform. The exchange currently hosts 89 trading pairs. The daily trading volume is $313,199 million (CoinMarketCap’s data as of November 2).

In August, hackers hacked into the hot wallet of Asian crypto exchange ZB and withdrew $4,8 million from it. The platform’s team also temporarily suspended withdrawals.

According to analytics company Chainalysis, the first half of October became a record for the number of attacks on crypto projects. As a result of 11 hacks, about $718 million was stolen from DeFi protocols.

For the reasons for the record number of hacks in 2022, check out GetBlock Magazine’s article.

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