Deribit Cryptocurrency Exchange Hacked for $28M in Bitcoin, Ethereum, and USDC

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Last Updated on November 2, 2022 by Bitfinsider

Around midnight on Tuesday, the cryptocurrency futures and options exchange Deribit experienced a security breach, and hackers stole around $28 million from the firm’s hot wallet.

Hot wallets are frequently used by exchanges to quickly process withdrawals. However, because their private keys are kept on a company’s computers to sign withdrawal transactions, these wallets carry a significant level of danger.

The Panama-based exchange said in a tweet that while their hot wallet had been compromised for $28 million, client assets and cold storage addresses were unaffected.

Deribit stated that “the hack is isolated to their BTC, ETH, and USDC hot wallets,” to inform users via a Tweet that they are unaffected despite the fact that the thief has taken close to $28 million.

Source: Twitter

The stolen USDC was promptly converted to Ethereum, earning the hacker 691 BTC and 9,111.59 ETH. The money is now kept in two wallets that support both Bitcoin and Ethereum. As of the time of writing, the money has not been sent to any mixing or laundering service.

Users have been reassured by the company that they are still in a “financially sound position” and that its reserves would pay the loss without depleting the insurance fund.

Deribit claimed that withdrawals from the exchange had been suspended while “they are performing ongoing security checks.”

Additionally, the business has warned against making fresh deposits. Deposits that have already been sent will still be processed and credited to accounts once the necessary amount of confirmations have been received, according to Deribit.

The failure of investment company Three Arrows Capital (3AC) also has an adverse effect on the derivatives exchange .

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