World’s largest by market share bitcoin Deribit, an options exchange, reportedly lost $28 million in a hack attack. cryptocurrency lost. The company has also stopped withdrawals.
Cryptocurrency Exchange Deribit Stops Withdrawals Until It Makes Sure Security Vulnerabilities Have Been Closed
Deribit explained the details on the subject as follows:
“Deribit hot wallet has been seized, but client funds are safe and loss is being covered by company reserves.
Our hot wallet was hacked earlier this evening, just before midnight on November 1, 2022, worth $28 million.”
The company said that security checks remain and it is halting withdrawals, including withdrawals from third-party custodians Copper, Clearloop and Cobo, until it is confident that reopening the platform is safe.
Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves
Our hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022.
— Deribit (@DeribitExchange) November 2, 2022
The company said Deribit’s compromised hot wallets included funds in Bitcoin, Ethereum, and USDC. Cold storage addresses containing 99% of user funds were not affected.
The hack was the final blow for the stock market, which was forced to liquidate its positions after bankrupt crypto hedge fund Three Arrows Capital failed to meet margin calls.
This event comes shortly after Deribit raised approximately $40 million from existing investors at a valuation of $400 million.
Deribit said it “remains in a financially sound position and continued operations will not be affected by the attack.” Deribit stated that the company’s insurance fund will not be affected as the loss will be covered by its reserves.
Founded in 2016, Deribit mainly caters to institutional investors. According to the data, Bitcoin has a trade open interest share of over 85% in options trading. Open interest is the value of derivative contracts that have not yet been paid.
*Not investment advice.
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