HomeNEWSDeribit surrenders $28 million to fresh exploitation

Deribit surrenders $28 million to fresh exploitation


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Popular cryptocurrency derivative exchange, Deribit has endured about $28 million exploitation. The exchange confirmed the development in a Wednesday Twitter post. Occasioned by this development, the exchange immediately paused withdrawals on its network. As of press time, Deribit disabled some sections on its website.

According to Deribit, the attacker targeted its hot wallet. However, it assured customers of the safety of their funds. The exchange promised to cushion the effect of the losses suffered through the hack by its reserves. Further, the exchange revealed that 99% of users’ funds are usually stored in cold storage to avoid this type of incident. As a result of this, client’s assets Fireblocks, and cold storage addresses were not affected.

As part of its measure to curtail the incident, Deribit discontinued withdrawal on its platform. It also halted the running of some assets like custodian Copper Clearloop and Cobo. The exchange promised to resume the suspended activities when it is 100% confident of its security. According to Deribit, deposits that had earlier been made will be processed and credited after the required number of confirmations.

Deribit insurance not affected by the hack – Representative

According to a Deribit representative on Telegram, the exchange insurance remains unaffected by the hack. The representative noted that Deribit still seems financially stable despite the hack. In addition, a representative at the exchange also revealed that Deribit intends to proceed with withdrawal as soon as possible. The representative also revealed that as of now, the exchange wants to review all security measures.

Since its establishment in 2016, this is the first time the exchange is experiencing an attack. Deribit is one of the biggest crypto derivative in the globe. According to analysis, the exchange records about $280 million trading volume daily. Worth noting that the exchange aims to work on full incident report to provide more details on the hack.

Deribit exchange joins the growing list of crypto firms that have experienced exploitation in 2022. Last Month, DeFi platforms suffered a staggering 44 attacks on 53 protocols. These attacks claimed about $760 million. This, according to reports, remains the highest deficit ever suffered by DeFi platforms within a month. Likewise, the attacks on DeFi platforms last month pushed the total amount of funds stolen by hackers to $2.98 billion in 2022.

Before the attack on Deribit, FBI had raised the alarm about the increasing exploitation of DeFi platforms. Via a public service announcement on the FBI Internet Crime Complaint Center, the law enforcement agency describes how investors lose money to hacks on DeFi platforms. The FBI urged investors to do due research before committing their investment to these platforms.

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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