Cryptocurrency exchange Deribit announced in the final hours of Tuesday that it had experienced an exploit targeting its hot wallet.

Thus, the Deribit trading platform is among the list of cryptocurrency projects that have suffered the fate of hacking and theft.

The platform, through its official account on Twitter, announced the unfortunate incident and clarified that despite the recognition of the loss announced, users will not be affected as it will bear the loss from its deep reserves.

The forum tweeted as follows:

The Hot Deribit wallet has been hacked, but customer funds are safe and the loss is covered by the company’s reserves.

Just before midnight UTC on November 1, 2022, our Hot Wallet was hacked and $28 million was withdrawn.

Apart from the Hot Wallet, the platform said none of its censored wallets are affected by fireblocks or other cold storage.

It noted that it has made it a matter of public policy to protect 99% of user funds in cold storage to minimize the potential impact of these events.

Deribit is one of the largest players in the derivatives world, currently ranked eighth according to data from CoinMarketCap.

The platform clarified that in an effort to improve its security systems, it had to temporarily halt core activities on its platform, including withdrawals, until it was certain that the loopholes had been patched.

It also clarified that it has increased the number of confirmations required for deposits.

Trading platforms have been a very fertile ground for hackers this year, who have expanded their annoying activities beyond centralized trading platforms to their decentralized counterparts.

From the Crypto.com hack to the Nomad protocol, this trend has become a threat to many crypto platforms and actors, who now need to step up their security efforts and modernize their fortifications.

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