Deribit Halts Withdrawal After the Exchange experiences a $24 million Hack

3:00 pm, Wed, 2 November 22

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On November 1st, the Dutch exchange Deribit announced that they had lost $28 million to a recent hack. It was made clear by the company that the hack did not affect the client’s assets, and none of them will have to experience any losses. They also announced that crypto withdrawals would be halted until it is completely safe to re-open

The exchange also mentioned that the hack only affected the USDC, BTC, and ETH hot wallets. The client’s assets or any other stuff stored in cold wallets remained safe. Deribit also has company reserves that cover the losses during such an event.

“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 types of events.”

Founded in 2016, Deribit is one of the biggest crypto derivatives exchanges in the world. It allows users to trade crypto options and futures. According to current data available on Coinmarektcap, the exchange has a daily volume of approx. $280 million.

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Will we Witness More Hacking Exploits in 2022?

According to the analytics presented by Chainanalysis, October was the biggest month this year for hacking exploits. The analysis was presented on October 13th and did not even account for the rest of the month.

According to the findings, over $3 billion have been lost in 125 different hacking incidents over DeFi protocols in 2022.

Experts are predicting that 2022 will end up as the biggest hacking year for the crypto space. The previous biggest hacking year was the last year, 2021.

We have also seen a shift towards DeFi hacking as they have become an easier target. In 2019, approx. 90% of hacks took place on centralized crypto exchanges. In 2022 it’s the opposite as approx. 90% of the hacks have targeted the DeFi protocols.

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