• Deribit, crypto options and futures exchange announced that the platform’s hot wallet was compromised for $28 million on November 1. 
  • The exchange assured clients that funds are safe and losses are covered by Deribit’s company reserves. 
  • Deribit has halted withdrawals to third-party custodians Copper Clearloop and Cobo, until all security checks are complete. 

Deribit, a crypto futures exchange, lost $28 million worth of cryptocurrencies, in a recent hack on its platform. The exchange has assured users that the insurance fund remains unaffected and losses will be covered from company reserves. 

Also read: DeFi token holders alert: Ribbon Finance’s lend product poses risks, argues analyst

Deribit hacked for $28 million before the midnight hour on November 1

Deribit exchange announced that the platform’s hot wallet was compromised to a hack before midnight on November 1, 2022. The exchange primarily focuses on options trading. The loss of $28 million in various cryptocurrencies was confirmed.

While the platform has an insurance fund, Deribit announced that all client funds are safe and losses incurred from the hack are covered by company reserves. The exchange assured users that necessary steps are being taken to issue refunds to affected parties. 

Deribit is working on security checks and investigating the incident, in the meanwhile it has halted withdrawals to third-party custodians. The exchange will announce the completion of the security check and the resumption of withdrawals to custodians Copper Clearloop, Cobo, and others. 

Client assets and cold storage addresses of the exchange remained unaffected by the hack. The company disclosed that it is a procedure to keep 99% of user funds in cold storage to limit the impact of a security breach or hack. Therefore, the event was isolated and quarantined to Bitcoin, Ethereum and USDC hot wallets.

Deposits that have already been sent will be processed after the required number of confirmations are completed. The number of confirmations required has been increased in light of the hack, once it is complete funds will be credited to accounts. Users are requested not to send further deposits until the security checks are complete. 

The exchange was quoted in a recent tweet: 

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.

The fact that the exchange ensured security of client funds and covered losses from company reserves rather than insurance fund comes as good news to users. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Could USDT depeg following recent accusations from Consumers' Research?

Could USDT depeg following recent accusations from Consumers' Research?

A digital billboard accusing Tether of corruption was featured in Times Square. Historically, stablecoins often depeg following controversies surrounding respective parent companies. Tether recently launched a new synthetic dollar backed by gold.

More Cryptocurrencies News

Ethereum Layer 1 and 2 monthly active users surpass 25 million milestone amidst crypto bloodbath

Ethereum Layer 1 and 2 monthly active users surpass 25 million milestone amidst crypto bloodbath

Monthly active users on Ethereum chain’s Layer 1 and 2 projects have crossed 25 million per Token Terminal data. Despite the rise of Ethereum’s competitors like Solana, with the meme coin narrative, Ether remains relevant among traders. 

More Ethereum News

ZKsync token faces massive sell-off following launch

ZKsync token faces massive sell-off following launch

A report from Nansen on Tuesday revealed that the top 10,000 wallets that were airdropped ZKsync's newly launched ZK token have begun selling their holdings. The price of ZK has dropped 34.5% since its inception after nearly half of the top wallets that received its airdrop on Monday sold all of their allocation.

More ZKsync News

Global Ethereum ETFs experience surge in net inflows as Hashdex files for combined spot ETH and Bitcoin ETF

Global Ethereum ETFs experience surge in net inflows as Hashdex files for combined spot ETH and Bitcoin ETF

Ethereum is down 3% on Tuesday as Hashdex submitted a market-weighted crypto ETF to the SEC, aiming to track the price of ETH and Bitcoin. Global investors have also increasingly purchased ETH ETFs amid declining exchange reserves.

More Ethereum News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP