Deribit crypto exchange, which is one of the major digital currency trading platforms, stated that its hot wallet had been hacked and thereafter it halted withdrawals on the platform. The organization has faced a loss of $28 million due to the recent hack. Further details have been noted in the section below.
Deribit Crypto Exchange Hot Wallet Hack
The Deribit crypto exchange hot wallet was hacked before midnight struck the UTC time zone on Monday, November 1, 2022, according to a Twitter post by the exchange. The exchange mentioned that the funds their clients had put in are safe and explained the same saying:
“Client assets, Fireblocks or any of the cold storage addresses are not affected. It’s company procedure to keep 99% of our user funds in cold storage to limit the impact of these types of events.”
Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves— Deribit (@DeribitExchange) November 2, 2022
Our hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022.
The crypto exchange is now looking forward to conducting security checks because of which it is necessary that withdrawals are paused for a while. Deribit noted that the cash-out procedure would be paused until they are 100% confident that their security system is not at fault. In a Telegram notification, they stated:
“Deposits already sent will still be processed and after the required number of confirmations, they will be credited to accounts. 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 organization even assured that the insurance fund would not be affected due to the recent breach of Deribit hot wallet security. They mentioned that any and every loss would be covered by the assets and reserves of the company and that its users need not worry. The cases of hacking in the crypto domain have been increasing at an unprecedented speed, which is why it is essential that the sector is regulated properly. Therefore, this crypto crime news is of utmost significance right now.