Bitcoin Options Giant Deribit Loses $28 Million in Hot Wallet Hack – Bitcoin News

The world’s largest bitcoin options exchange, Deribit, was hacked for close to $28 million, according to an update from the company’s official Twitter account on Nov. 2. Deribit says that the firm’s hot wallet was drained just before midnight the day prior.

Crypto Derivatives Exchange Deribit Loses $28 Million — Company Says Customer Funds Are Safe and Business ‘Remains in a Financially Sound Position’

Deribit remains the top crypto options exchange, in terms open interest and volume related to bitcoin (BTC), ethereum(ETH) options. On Wednesday, the exchange’s official Twitter account explained that the trading platform’s hot wallet was siphoned for nearly $28 million.

“Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves,” Deribit saidOn Wednesday. Our hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022,” the trading platform added. Further, the crypto derivatives exchange was added explained:

All client assets, fireblocks and cold storage addresses remain unaffected. It’s company procedure to keep 99% of our user funds in cold storage to limit the impact of these type of events. This hack was isolated [and]You can keep your USDC, ETH and BTC hot wallets.

Deribit was hit hard by a loss when it sold a handful of positions to Three Arrows Capital (3AC), a well-known and long-defunct cryptocurrency hedge funds. Deribit said on Wednesday that it halted withdrawals until the exchange is “confident all is safe to re-open.”

The crypto derivatives firm further detailed that the company’s insurance will not be impacted and the loss will be paid by company reserves. Deribit added that the company also increased the confirmation limit for deposits, which led to a delay in crediting funds.

Deribit also shared an ethereum address (ETH) and noted that some of his hacked funds remained inside the wallet. The address is flagged on as it says: “this address is reported to be involved in an exploit draining Deribit’s hot wallet.”

The wallet holds 9,111.59 ether worth $14.17 million using today’s ethereum (ETH) exchange rates. Deribit shared also the bitcoin (BTC), address, where some of the stolen funds are still at the time this article was written. The bitcoin wallet holds 691.12 BTC worth $14.15 million using today’s bitcoin exchange rates.

“Deribit remains in a financially sound position and ongoing operations will not be impacted,” the exchange concluded on Wednesday morning (ET).

In this story, tags
$28 Million, 691.12 BTC 9111.59 ether and bitcoin options Breach, BTC Compromised, crypto derivatives Exchange, deribit ETH, ETH Options Hack, Hacker, Hacker steals money, Hacks Nov 1, Nov 2.

Let us know your thoughts on the Deribit hack which cost nearly $28 million. Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been active since then. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for News, with over 6,000 articles on disruptive protocols.

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