The world’s biggest crypto and derivatives exchange platform Deribit has announced through its official Twitter page that a hack of $28 million occurred in its hot wallet on November 1st.
Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves
Our hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022.
— Deribit (@DeribitExchange) November 2, 2022
According to the tweet, regular security checks are being performed and therefore withdrawals have been suspended including those from third-party custodians Copper Clearloop and Cobo until they are certain that everything is safe to re-open.
Different measures have also been put in place to curtail the ongoing challenge. At the moment deposits that have already been made will be processed and credited to accounts following the required number of confirmations. Deribit also revealed that the hack has been confined and segregated to its wallets for Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC).
Client assets, Fireblocks, and cold storage addresses are not harmed because Deribit usually keeps 99% of its users’ cash in cold storage in order to lessen the impact of such accidents. Deribit also reported that the insurance fund is untouched, and the loss will be paid by business reserves. As a result, Deribit’s financial position remains stable, and its operations will continue unaltered.
Deribit has been receiving negative feedback since they broke the news.
“You mean a wallet was hacked, funds stolen, and will be covered by funds you made from your clients’ liquidations. Let us not beat around the bush,” says a Twitter user (@Boost13) in the comment section.
You mean a wallet was hacked, funds stolen and will be covered by funds you made from your clients liquidations. Lets not beat around the bush 😏
— Boosted_13 (@Boost13) November 2, 2022
Deribit is a crypto platform for traders of different backgrounds and styles. Deribit is currently partnering with companies such as Algo Trader, Actant, 1token, and Alertatron.
Beyond Deribit: Hack and Breach in the Crypto Space
The breach of Deribit’s hot wallet is just one of many recent hacks in the cryptocurrency world. A tweet by Chainalysis in October revealed that crypto hacks have already drained over $3 billion in the year 2022.
2/ At this rate, 2022 will likely surpass 2021 as the biggest year for hacking on record. So far, hackers have grossed over $3 billion dollars across 125 hacks. pic.twitter.com/vgT3pz2iOu
— Chainalysis (@chainalysis) October 12, 2022
The Solana-based crypto trading exchange, Mango markets recently reported a loss of $100 million due to an attack through an oracle price manipulation.
We are currently investigating an incident where a hacker was able to drain funds from Mango via an oracle price manipulation.
We are taking steps to have third parties freeze funds in flight. 1/
— Mango (@mangomarkets) October 11, 2022
The QANplatform, a well-known quantum-resistant layer 1 blockchain, was recently hacked, with the attacker obtaining $1 million.
Since the attack, the price of its native QANX coin has dropped by more than 90%. The attacker stole a total of 1.46 billion QANX tokens worth around $1 million. This token amount accounted for more than half of the total supply of 3.3 billion tokens.
