Deribit exchange’s hot wallet hacked for $28 million in USDC, ETH & Bitcoin, withdrawal paused


  • 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.

Deribit, the crypto futures and options exchange, became the victim of a security breach yesterday around midnight. The hackers have made over $28 million from the hot wallet of the exchange.

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.  

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. 

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. 

Meanwhile, Deribit has also suffered the insolvency of Three Arrows Capital.