It’s hot ! – The Deribit crypto platform suffered a hack. The company revealed the first details of this hack which would be brought under control, as well as the emergency measures taken and the possible impacts of this attack on customer funds, but also on the operation of the crypto exchange.
Deribit hack: siphoned wallets, spared cold wallets
In a series of tweets from November 2, Deribit announced that sone hot wallet has been hacked « earlier in the evening, just before midnight UTC on November 1, 2022 “. The amount of losses would amount to 28 million dollars.
However, this hack would not have impacted customer assets, as well as Fireblocks, or cold wallets. Hacking would be isolated and quarantined and would affect BTC, ETH, and USDC hot wallets.
Deribit pointed out that in accordance with company procedure, the platform retains 99% of funds of its users in a cold wallet, in order to limit losses in the event of hacking.
Suspension of withdrawals and coverage of losses: emergency measures and crisis communication
The company is reportedly carrying out ongoing security checks and has suspended withdrawals. These restrictive measures also apply to third-party custodians Copper Clearloop et Cobo. Withdrawals will resume when the Deribit team has ensured that, this reopening can be done” safely ».
For deposits sent before these restrictions, they will be processed once they have obtained the required number of confirmations, and will be credited to the relevant accounts. However, the crediting of these funds may experience delaysbecause the company has increased the minimum number of confirmations.
The company also devoted a few words to the coverage of losses. Deribit will pay for these, drawing on its reserves, and thus will not affect the insurance fund. The company concluded with reassuring remarks concerning its ” healthy financial position “, and emphasizing that ” ongoing operations will not be affected ».
Deribit is now on the list of crypto protocols that suffered a hack during the crypto winter 2022. This attack also reminds us of the importance of storing your assets in cold wallets, which are less exposed to hacking, than in hot wallets, which are much more vulnerable to hacks. This hack comes days after hackers targeted the Gate.io crypto exchange.
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