Deribit, one of the popular cryptocurrency options exchanges, has temporarily stopped withdrawal operations due to a hot wallet hack and a $28 million loss.
The Deribit exchange announced the compromise of its hot wallet on its official Twitter, confirming the fact of hacking and theft of $28 million.
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 Deribit team has announced a temporary suspension of operations for the duration of the actions to eliminate the consequences of the attack. The deposit and withdrawal functions are currently frozen. The company conducts due diligence and will open the functionality for customers as soon as the security service is sure that all problems have been fixed.
Deribit clarified that all customer funds are safe, and exchange losses are compensated from the company’s reserves.
“Our clients’ assets and their cold wallets are not affected. Because company procedural guidelines call for 99% of our user funds to be kept in cold storage to limit the impact of these types of events,” Deribit said.
The Deribit exchange has become the latest victim in a long list of crypto companies that have been targeted by hackers in 2022. October was the worst month in terms of the number of hacks and thefts in the history of the crypto industry. In just one month, hackers exploited 44 vulnerabilities in at least 53 protocols and were able to withdraw digital assets worth over $657 million, according to Peckshield, an analytics company.
Source: Bits
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