Crypto Derivatives Exchange Deribit Gets Hacked, “BTC, ETH and USDC Hot Wallets” Were Compromised

Just before midnight UTC on Tuesday (November 1), crypto derivatives exchange Deribit was hacked, and $28 million in $BTC, $ETH, and $USDC were stolen.

That was the bad news. The good news is that “client funds are safe and loss is covered by company reserves.”

Panama-headquartered Deribit, which was officially launched in June 2016, went on to say:

Client assets, Fireblocks or any of the cold storage addresses are not affected. It’s company procedure to keep 99% of our user funds in cold storage to limit the impact of these type of events. The hack is isolated & quarantined to our BTC, ETH and USDC hot wallets.

Deposits & withdrawals We are performing ongoing security checks and have to halt withdrawals including third-party custodians Copper Clearloop and Cobo until we are confident all is safe to re-open. Deposits already sent will still be processed and after the required number of confirmations, they will be credited to accounts.

We have raised the minimum number of confirmations for the moment causing a delay in crediting funds. Until we open wallets again we request you not to send new deposits. Insurance fund 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.

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