Hot Deribit wallet hack and loss of $28 million
Hot Deribit wallet hack and loss of $28 million
Panama-based crypto derivatives platform Deribit suffered a hacking attack worth around $28 million, in which the Hot Deribit wallet was hacked. The platform claims that its customers’ funds are still safe despite the latest attack.
The company said in a tweet on Twitter: “The wallet has been hacked It will be funny Hot, but customer money is safe and losses are covered by company reserves.
“Our Hot Wallet was hacked this evening before midnight UTC on November 1, 2022 for $28 million,” according to the platform.
The company assures its customers that Deribit Wallet Hack is only for Hot Wallet and any other Cold storage addresses were not affected by the hack and the company’s policy is to keep 99% of users’ funds in cold storage to minimize the impact of these incidents.
Also Read: Difference Between Hot And Cold Skin
The company said: “The Deribit wallet hack was detected in our hot wallets and the theft of coins from BTC, ETH and USDC. We are conducting continuous security checks and will need to stop withdrawals, including third-party custodians such as Copper Clearloop and Kobo, until we are sure everything is safe to reopen.
Deribit said its insurance fund would not be affected by the attack and losses would be paid from the company’s own reserves. According to Derbit, the platform is “in a healthy financial position and ongoing operations will not be affected.”
The platform also said, “We have increased the minimum number of confirmations for the time being, which will cause a delay in depositing funds. Until we reopen the wallets, we ask you not to send new deposits.
Earlier this year, Deribit was able to raise funds from its existing shareholder group at a value of $400 million, with sources close to the deal claiming the company raised about $40 million in the deal. Current shareholders in the company include QCP Capital, Acuna Capital and 10T Holdings. Meanwhile, Derbit’s chief commercial officer Luke Strygers said the $400 million valuation was essentially irrelevant, as the money came from the platform’s existing investors, not outsiders.
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