On Nov. 1, unknown individuals hacked into the hot wallet of the Deribit cryptocurrency derivatives exchange and withdrawn $28 million, according to a representative of the platform.
Deribit Hot Wallet Stolen, But Client Funds Safe, Losses Covered by Company Reserves
Earlier this evening, just before midnight UTC on November 1, 2022, our hot wallet was hacked for $28 million.
— Deribit (@DeribitExchange) November 2, 2022
“The Deribit hot wallet has been compromised, but user funds are safe and the losses are being covered by the company’s reserves,” the report said.
Due to the peculiarity of distinguishing between own funds and client funds, the exchange managed to save assets – 99% of the latter are stored in cold wallets.
Client assets, Fireblocks, or any cold storage addresses are not affected. The company’s procedure is to keep 99% of our user funds in cold storage to limit the impact of such events.
Hackers are isolated and segregated into our BTC, ETH and USDC hot wallets.
— Deribit (@DeribitExchange) November 2, 2022
Deribit has suspended withdrawals and withdrawals, including through third-party custodians Copper, Clearloop and Cobo. The platform will process the deposit sent and credit it to the account “after the required number of confirmations”. However, representatives of the exchange asked users not to send new requests.
Deposits sent will still be processed and, upon confirmation of the required amount, will be credited to the account.
— Deribit (@DeribitExchange) November 2, 2022
According to PeckShield analysts, the hackers stole around 9,080 ETH ($14.2 million) and around 691 BTC ($14.1 million).
#PeckShieldAlert @DeribitExchange reported that their hot wallets were stolen with ~$28M including ~$9,080 ETH ($14.2M) and ~$691 BTC ($14.1M) Attacker address: https:// t.co/pjI8h3YMYS https://t.co/mDsb0qgALP https://t.co/Fw3pWSZJcQ pic.twitter.com/uNDa0I8lX0
— PeckShieldAlert (@PeckShieldAlert) November 2, 2022
Recall that in September, Deribit closed a $40 million funding round, valuing the platform at $400 million, a figure that has fallen more than 5x since the company raised $100 million in August 2021 ($2.1 billion). ).
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