Biggest Crypto Options Exchange Deribit Hacked for $28 Million – What Happened?

cryptonews.com:

Panama-based crypto derivatives exchange Deribit has suffered a hacking attack estimated to be worth some $28 million. The exchange claims that its customers’ funds remain safe despite the latest attack. 

"Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves," the business said in a tweet.

"Our hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022," according to the exchange.

Deribit assured its clients that their assets, Fireblocks or any of the cold storage addresses were not affected by the hack, and that it is the firm’s procedure to keep 99% of their user funds in cold storage with the aim to limit the impact of such events.

"The hack is isolated & quarantined to our BTC, ETH and USDC hot wallets,” the company said. "We are performing ongoing security checks and have to halt withdrawals including third-party custodians Copper Clearloop and Cobo until we are confident all is safe to re-open."

Deribit also stated that its insurance fund will not be impacted by the attack, and the loss will be paid by the company’s own reserves. The exchange is in "a financially sound position and ongoing operations will not be impacted," according to Deribit.

"We have raised the minimum number of confirmations for the moment causing a delay in crediting funds. Until we open wallets again we request you not to send new deposits," the exchange said.

Earlier this year, Deribit managed to raise funds from a group of its existing shareholders at a $400 million valuation, with sources close to the transactions claiming that the business raised around $40 million in the deal. The company’s existing shareholders include QCP Capital, Akuna Capital, and 10T