In a hack of the crypto exchange Deribit, hackers stole an estimated 28 million US dollars from hot wallets (online wallets) of the exchange.
According to Deribit, the hack took place just before midnight on November 1st. However, the crypto derivatives exchange assured that customer funds are secured. According to its own statements, Deribit compensates for the losses from the company's reserves.
Despite the crypto hack: customer funds remain safe
Deribit said the hack only affected Bitcoin, Ethereum, and USDC hot wallets. The crypto exchange was already isolating these wallets and separating them from its own systems. Deribit therefore confirmed that most customer accounts, such as Fireblocks, were not affected by the hack.
In addition, Deribit emphasized the security of the “cold storage assets”. According to the exchange, 99% of all customer assets are held in these offline wallets to minimize the impact of hacker attacks . Furthermore, the hack does not affect the company's insurance fund either, since the reserves are sufficient to cover the loss.
Even as the exchange continues to operate, it is taking several security measures for the time being. For example, the exchange is also halting withdrawals for third-party custodians like Copper Clearloop and Cobo.
However, the company confirmed it was still processing customer deposits that took place before the hack, albeit at a slower pace. The exchange had to increase the minimum number of transaction confirmations, which can cause delays.
Binance offers help
After the announcement about the hack, Changpeng Zhao, the CEO of crypto exchange Binance , offered Binance 's help to Deribit . In a tweet, he wrote that his team is monitoring incoming funds and will freeze any funds going from Deribit to Binance.
According to a Twitter user , Zhu Su, the co-founder of insolvent crypto lender Three Arrows Capital (3AC), may be trying to recoup losses from the hack. Su was one of the co-founders of Deribit, which liquidated 3AC's positions when the crypto hedge fund failed to meet its margin calls earlier this year.
In addition, Deribit recently closed a $40 million funding round, bringing the company's valuation to around $400 million.
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