{"id":14259,"date":"2022-11-02T13:36:42","date_gmt":"2022-11-02T13:36:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-options-giant-deribit-loses-28-million-in-hot-wallet-hack-bitcoin-news\/"},"modified":"2022-11-02T13:36:42","modified_gmt":"2022-11-02T13:36:42","slug":"bitcoin-options-giant-deribit-loses-28-million-in-hot-wallet-hack-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-options-giant-deribit-loses-28-million-in-hot-wallet-hack-bitcoin-news\/","title":{"rendered":"Bitcoin Options Giant Deribit Loses $28 Million in Hot Wallet Hack \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The world\u2019s largest bitcoin options exchange, Deribit, was hacked for close to $28 million, according to an update from the company\u2019s official Twitter account on Nov. 2. Deribit says that the firm\u2019s hot wallet was drained just before midnight the day prior. <\/strong><\/p>\n

Crypto Derivatives Exchange Deribit Loses $28 Million \u2014 Company Says Customer Funds Are Safe and Business \u2018Remains in a Financially Sound Position\u2019<\/h2>\n

In terms of open interest and volume tied to bitcoin (BTC<\/a>) and ethereum (ETH<\/a>) options, Deribit<\/a> has been the leading crypto options exchange for quite some time now. On Wednesday, the exchange\u2019s official Twitter account explained that the trading platform\u2019s hot wallet was siphoned for nearly $28 million.<\/p>\n

\u201cDeribit hot wallet compromised, but client funds are safe and loss is covered by company reserves,\u201d Deribit said<\/a> on Wednesday. Our hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022,\u201d the trading platform added. The crypto derivatives exchange further explained<\/a>:<\/p>\n

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Client assets, Fireblocks or any of the cold storage addresses are not affected. It\u2019s 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 [and] quarantined to our BTC<\/a>, ETH<\/a>, and USDC hot wallets.<\/p>\n<\/blockquote>\n

The hack follows the loss Deribit suffered when it liquidated a few positions tethered to the well known and now-defunct cryptocurrency hedge fund Three Arrows Capital<\/a> (3AC). Deribit said on Wednesday that it halted withdrawals until the exchange is \u201cconfident all is safe to re-open.\u201d<\/p>\n

The crypto derivatives firm further detailed that the company\u2019s insurance will not be impacted and the loss will be paid by company reserves. Additionally, Deribit said that it also raised the minimum number of confirmations for deposits which caused a delay in crediting funds.<\/p>\n

Deribit further shared an ethereum (ETH<\/a>) address and remarked that some of the hacked funds remained in the wallet. The address is flagged on etherscan.io as it says: \u201cthis address is reported to be involved in an exploit draining Deribit\u2019s hot wallet.\u201d<\/p>\n

The wallet holds 9,111.59 ether<\/a> worth $14.17 million using today\u2019s ethereum (ETH<\/a>) exchange rates. Deribit also shared the bitcoin (BTC) address<\/a> where some of the hacked funds remain at the time of writing. The bitcoin wallet holds 691.12 BTC<\/a> worth $14.15 million using today\u2019s bitcoin exchange rates.<\/p>\n

\u201cDeribit remains in a financially sound position and ongoing operations will not be impacted,\u201d the exchange concluded on Wednesday morning (ET).<\/p>\n

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\nTags in this story
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$28 million<\/a>, 691.12 BTC<\/a>, 9111.59 ether<\/a>, bitcoin options<\/a>, Breach<\/a>, BTC<\/a>, Compromised<\/a>, crypto derivatives exchange<\/a>, deribit<\/a>, ETH<\/a>, ETH Options<\/a>, etherscan<\/a>, Hack<\/a>, hacked exchange<\/a>, Hacker<\/a>, Hacker steals funds<\/a>, Hacks<\/a>, Nov 1<\/a>, Nov 2<\/a><\/div>\n<\/div>\n

What do you think about the recent Deribit hack for close to $28 million? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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