The biggest cryptocurrency options exchange platform in the world, Deribit, said in a tweet that its hot wallet had been broken into and that it had lost $28 million; nevertheless, client assets were not affected, and the loss was compensated for by the reserves held by the firm.
The tweet read:
“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.”
In order to mitigate the effects of occurrences of this kind, it is standard operating policy for the corporation to place 99 percent of its users’ assets in a secure location. According to a tweet sent by Deribit, the attack has been contained and confined to the company’s BTC, ETH, and USDC hot wallets.
According to the company, deposits that have already been made will continue to be processed, and once the necessary number of confirmations have been received, the funds will be credited to the accounts.
Because continual security checks are required, Deribit was forced to block withdrawals, including those from custodians Copper Clearloop and Cobo, until the cryptocurrency exchange can be one hundred percent certain that its security has been restored after the incident.
In the realm of cryptocurrency options, Deribit maintains its position as the dominant player. The whole Bitcoin options interest is held by the derivatives exchange at a rate of 89.76% of the aggregate. According to CoinGecko statistics, Deribit’s daily trading volume is $280 million at the time of writing.
