Deribit faces a $28M attack on its hot wallet

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Deribit, a well-known cryptocurrency options and futures exchange, announced the news of $28 million loss due to an attack on its hot wallet on Twitter. However, the company was successful in preventing the further attack on its hot wallets for BTC, ETH, and USDC. 

In accordance with recent tweets, addresses for the company’s cold storage have not been compromised. A tweet by the company reads:

“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 cold storage to limit the impact of these type of events.”

As Deribit’s Chief Commercial Officer Luuk Strijers says, client holdings have not been compromised but withdrawals are to be placed on hold while the platform conducts security checks. Strijers disclosed that Deribit’s balance sheet assets, which are separate from the company’s $40 million insurance program, will pay the whole loss. 

Deribit reopens regular withdrawals

Explaining the insurance fund, the company tweets, “the insurance fund will not be impacted, the loss will be paid by company reserves. Deribit remains in a financially sound position and ongoing operations will not be impacted.”

Deribit is currently performing active security checks and as per the latest development, it has re-opened regular withdrawals for BTC, ETH and USDC. Moreover, it has also opened Copper Clearloop and Cobo withdrawals.

With this attack, Deribit joins a long list of cryptocurrency platforms that have recently been the targets of massive hacks. It is important to note that with approximately $718 million stolen in only the first two weeks of October this year, which has become the worst month for crypto hacks ever recorded.

Recently, the THORChain Network was halted for almost 20 hours due to a cyber attack, as TheCoinRise reported. Moreover, renowned vesting platform Team Finance has alsolost $14.5 million to ‘Hacktober’.

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