- Hackers attacked Deribit’s hot wallet and stole over $28 million.
- The company stopped withdrawals that also include third-party custodians Cobo and Copper Clearloop.
- Once security checks are done, withdrawals will begin.
Hot wallets are usually used by exchanges for the instant processing of withdrawals. Since the private keys of these wallets are saved in the servers of the company so as to sign withdrawal transactions, these are quite risky.
The exchange tweeted regarding their wallet being hacked for over $28 million. Thankfully, cold storage addresses and client assets didn’t suffer any harm.
Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves— Deribit (@DeribitExchange) November 2, 2022
Our hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022.
According to Deribit, the hack is isolated to their USDC, BTC and ETH hot wallets.
691 BTC and 9,111.59 ETH were made by the hacker along with the USDC converting into Ethereum quite quickly.
Throughout Ethereum and Bitcoin, the funds are held in two wallets. Until now, the funds have not been shifted to any mixer or laundering service.
According to the company, users need not worry as everything is safe financially and without impacting the insurance money, loss is covered by its reserves.
Insurance fund— Deribit (@DeribitExchange) November 2, 2022
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 has shared about conducting security checks and stopping withdrawals from the exchange.
Moreover, the firm has warned against depositing funds currently. Deribit mentioned that deposits that have been sent already will be processed and will be credited into accounts upon the needed confirmations.
Deposits already sent will still be processed and after the required number of confirmations, they will be credited to accounts.— Deribit (@DeribitExchange) November 2, 2022
Meanwhile, Deribit has also suffered the insolvency of Three Arrows Capital.