By hacking the Deribit crypto trading platform, hackers managed to steal $28 million in Bitcoin, Ethereum and USDC

Bad luck for the crypto trading platform Deribit that was hackedthem hackers managed to steal 28 million dollars in Bitcoin, Ethereum and USDC, the company confirmed on Twitter.

“Deribit Hot Wallet has been compromised, but customers’ funds are safe and the loss is covered by the company’s reserves.

Our hot wallet was hacked with $28 million earlier this evening just before midnight UTC on November 1, 2022. Client assets, Fireblocks or any of the cold storage addresses are not affected. It is company procedure to keep 99% of our user funds in a cold wallet to limit the impact of such events.

The hack is isolated and quarantined in our BTC, ETH and USDC hot wallets. We carry out ongoing security checks and must stop payouts, including third party custodians Copper Clearloop and Cobo, until we are satisfied that everything can be safely reopened.

Deposits already sent will still be processed and after the required number of confirmations will be credited to accounts. We have increased the minimum number of confirmations at this time, which delays the crediting of funds. Until we reopen wallets, we ask that you do not send new deposits. The insurance fund will not be affected, the loss will be paid out of the company’s reserves. Deribit remains in a sound financial position and ongoing operations will not be affected. »

Following this hack, crypto exchange Deribit therefore suspended payouts while they waited to learn more about what allowed the hackers to steal these tens of millions of dollars from the company’s primary crypto wallet.

Deribit specifies that users’ crypto funds are not affected because the trading platform, which specializes in crypto derivatives, states that it stores 99% of its funds in so-called “cold” crypto wallets that are not connected to the Internet and therefore inaccessible to hackers.

Cryptocurrency hacking and theft reminiscent of risks of leaving your crypto funds on a crypto exchange which can be effectively hacked by increasingly clever hackers.
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To reassure its customers, Deribit claims to be in a “sound financial position”, losses which will be covered by the funds of the crypto exchange, which is one of the leaders in trading crypto derivatives.

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