Nov 02, 2022 Frank Stewskid

Deribit hacked for $28 million, user funds are safe

One of Deribit’s hot wallets was compromised, resulting in a loss of $28 million. Nevertheless, the company states that client assets are not affected and the loss will be reimbursed from its reserves. 

According to a statement released on Twitter by Deribit, on November 1, 2022, just before midnight UTC one of its hot wallets was hacked, and $28 million were drained from it. Following the incident, the Deribit team has managed to isolate the hack to its BTC, ETH, and USDC hot wallets. Deribit also managed to trace where the stolen assets are kept, sharing a bitcoin network address, currently holding about 691 BTC, or a bit over $14 million, at the time of writing this article.

Deribit also stated that no user funds were compromised during the attack, as according to a company procedure – 99% of user funds are kept in cold wallet storage. Nevertheless, following the exploit withdrawals on the platform were halted until the security team makes sure they are safe. 

Furthermore, the project’s Insurance Fund is said to not be impacted as well, as the loss from the hack will be paid by company reserves. Deribit states it remains in “a financially sound position and ongoing operations will not be impacted”.

Cryptosecurity firms are currently tracking the attacker and the stolen assets, offering help to Deribit. Other crypto projects expressed willingness to cooperate in an attempt to isolate the attacker from getting liquidity and being able to withdraw assets from the blockchain. OKX CEO Jay Hao, announced his team is aware of the situation and is proactively helping freeze the attacker’s addresses on the platform. 

Currently, withdrawals on Deribit are still halted, with an update on the situation expected in the following hours.

 

Author:

Frank Stewskid

Frank Stewskid

Last updated: Nov 02, 2022

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