Deribit’s hot wallet has been drained of $28 million worth of crypto
According to a tweet, the largest cryptocurrency options exchange, Deribit, was the victim of a $28 million theft. Amid ongoing security checks, withdrawals have been momentarily stopped. When the exchange can reopen is still unknown.
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.
— Deribit (@DeribitExchange) November 2, 2022
Deribit Suffers $28 Million Hack
The trading platform claims its customers’ cash is secure and adds that its reserves have paid any losses, so the hacking incident won’t impact Deribit’s insurance fund. Deribit asserts that it keeps 99% of its clients’ money in cold storage locations. The attacker compromised the hot wallet for the exchange.
The exchange has emphasized that the current attack won’t impact its operations and is in a healthy financial position.
Data from the derivatives data site Coinglass show that Deribit is still in charge of the bitcoin options market. With its current headquarters in Panama, the Dutch derivatives exchange holds 89.76% of the need for Bitcoin options. CME, a world leader in derivatives with offices in Chicago, comes in second with a 6.87% market share. Also included in the top five are FTX and Okex. Deribit has a staggering 96.64% market share, effectively dominating the Ethereum options industry. Deribit, the subject of behind-the-scenes turmoil, purportedly received a $500 million stake from the now-defunct hedge fund Three Arrows Capital (3AC).
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