Deribit Hot Wallet 'Compromised,' Suffers $28M Hack: Are Client Funds Safe?

Zinger Key Points
  • Crypto exchange Deribit stopped accepting withdrawals after a hot wallet attack in which hackers made off with $28 million in stolen funds.
  • $28 million in Bitcoin, Ethereum, and Circle's USDC were stolen by the hackers.
Deribit Hot Wallet 'Compromised,' Suffers $28M Hack: Are Client Funds Safe?

Cryptocurrency derivatives exchange Deribit has ceased withdrawals, following a $28 million hot wallet attack.

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

Hackers made off with Bitcoin BTC/USD, Ethereum ETH/USD, and Circle's USDC/USD.

See Also: The Biggest Crypto Hacks In History

“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,” it added.

Deribit, touted as one of the biggest cryptocurrency derivatives exchanges in the world, has temporarily halted withdrawals from third-party custodians Copper Clearloop and Cobo.

Deposits already sent will still be processed and, after the required number of confirmations, will be credited to accounts.

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“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,” the company stated. “The insurance fund will not be impacted, the loss will be paid by company reserves. Deribit remains in a financially sound position and ongoing operations will not be impacted."

Deribit was founded in 2016 and lets customers trade cryptocurrency futures and options. It has $280 million worth of daily trade activity, according to data from CoinGecko.

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