Unknown hackers have exploited a crypto securities exchange Deribit. Their activities led to the loss of BTC, ETH, and USDC, which amounted to $28 million on November 1. The report was submitted on the company’s official Twitter account after a few hours.
According to Deribit, many hot wallets in its platform were hijacked by hackers. The firm confirmed that customers’ funds are secure and any form of loss will be returned. The firm will compensate any user that experiences loss by using the company’s reserve account.
Deribit announced that “Users funds, Fireblocks or any cold wallet address was not affected. One of the company’s policies is storing 99% of our customers’ assets in a cold wallet. Such policy was implemented to avoid huge loss during an attack that will be launched against the exchange by hackers.”
To curtail the activities of the hackers, withdrawals have been suspended till further notice. Suspending withdrawals will help the security tests that the firm is running. Copper Clearloop and Cobo will not function effectively until the platform is 100% secured.
Deposits transferred to the exchange before the incident will still be processed. The funds will be credited into their wallets if they pass the acceptable number of confirmations.
Is trading still progressing on Deribit Exchange?
In a response by the group admin of Deribit’s official telegram group, the firm did not stop trading activities. Trading on the platform operates as usual, but withdrawals have been restricted. Deribit decreased and limited the loss of users’ funds because of its hot wallet features.
Deribit’s reserve assets were not affected during the hack; if not, Deribit would fold up. The company remains financially buoyant, and the havoc did not affect its operations, Deribit reported.
Deribit’s representative informed Cointelegraph that the firm is willing to formally activate withdrawals. To ensure the security of funds, the company is testing all the exchange security gadgets. The company is also investigating the event that led to the attack on its platform.
Deribit has been operating since 2016 but did not witness such an attack until November 1, 2022. The exchange is one of the global central crypto exchanges; users trade futures and spots. According to CoinGecko, the exchange’s daily trading volume is up to $280 million.