Crypto Exchange Deribit Loses $28 Million In Hot Wallet Hack

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Deribit, the largest bitcoin options exchange by market share, was hacked and lost $28 million. Withdrawals were likewise blocked by the corporation.

Crypto Exchange Deribit Loses $28 Million In Hot Wallet Hack

The company stated that it is doing regular security tests and has blocked withdrawals, including those from third-party custodians Copper, Clearloop, and Cobo until the platform is certainly safe to re-open.

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.
— Deribit (@DeribitExchange) November 2, 2022

According to the company, the hacked hot wallets held assets in Bitcoin, Ether, and USDC. Its cold storage addresses, which housed 99% of customer funds, were unaffected.

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 & quarantined to our BTC, ETH and USDC hot wallets.
— Deribit (@DeribitExchange) November 2, 2022

The exchange is the latest in a long line of cryptocurrency firms to be hacked in recent weeks.

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