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Deribit’s lost $28m to a Hot Wallet Hack

Deribit, a cryptocurrency derivatives market, has been hit with a $28 million hot wallet attack. The largest bitcoin derivatives exchange, Deribit, had $28 million stolen from its hot wallets, prompting them to suspend withdrawals until they conduct a full audit of their security. The stolen cryptocurrency included bitcoin, ether, and USDC, according to the exchange.

Nearly all customer money is stored in cold storage at Deribit, which was immune to the hack. Because of the breach, Deribit temporarily suspended all withdrawals while they fixed the security flaws. Similarly, withdrawals via the third-party custodians Copper, Cobo, and Clearloop were blocked but have now resumed.

Deribit has said they want to resume normal customer withdrawals soon. The business has assured customers that any payments previously received for processing would be reimbursed as soon as the necessary confirmations are fulfilled; however, future deposits should be withheld until the security checks are completed.

Since the beginning of 2022, the crypto ecosystem has been afflicted by a series of high-profile hacks, including the $100 million breach of a bridge on BNB Smart Chain and the $100 million breach of the Solana-based decentralised finance protocol Mango Markets.

About Deribit

Deribit, which is owned by the Dutch, started in Panama in 2016. With a near-90 percent hold of the Bitcoin options market and a dominant 97 percent control of the Ethereum options market, it is by far the largest participant in the crypto derivatives industry. Since the inception of the exchange, this is the first instance of a large hack that resulted in considerable losses.