Crypto Exchange Deribit Suffers $28M Hack and Suspended Withdrawals

Deribit Hot Wallet Hack and Halt of Withdrawals

Deribit tweeted that its hot wallet had been hacked, but customer cash was secure, and the company's reserves would pay the loss. According to the exchange, a hacker stole USD 28 million from their hot wallet early evening on November 1, 2022. The business further stated that to lessen the effect of these occurrences, the firm practices keeping 99% of customer cash in cold storage. The attack has been restricted to their hot wallets for BTC, ETH, and USDC.

The business claimed to be carrying out continuous security tests and has stopped withdrawals, including those from third-party guardians Copper, Clearloop, and Cobo, until the company is confident that the network is secure enough to re-open.

Different Hacks and Bankruptcies

Deribit joins the lengthy list of cryptocurrency businesses that have been the subject of hostile breaches in recent weeks. More than $718 million in thefts occurred in the first two weeks of October, making it the most devastating month ever recorded. The list of breaches includes the Moola Market loss of over $10M in a market manipulation attack, the announcement of Credit Suisse's Radical Plan as Q3 Loss Exceeds $4 Billion, Meta's Metaverse Division loss of $3.7 billion in Q3, Binance's estimate of $100 million loss in a blockchain hack, TempleDAO hack, bankruptcy of bitcoin miner Core Scientific, $80 million exposure of Marathon, and many more.

The business stated that Deribit is in a fiscally solid position and that there is no harm to ongoing activities before announcing that the deficit will be reimbursed from corporate reserves.