Deribit crypto exchange halts withdrawals amid $28M hot wallet hack

Major cryptocurrency derivatives exchange​​ Deribit has halted withdrawals after suffering a $28 million hot wallet hack.

Deribit exchange got its hot wallet compromised before midnight UTC on Nov. 1, the firm reported on Twitter.

The exchange emphasized that client funds are safe as losses are covered by Deribit’s reserves, stating:

“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.”

As part of the ongoing security checks, Deribit had to halt withdrawals, including custodians Copper Clearloop and Cobo, until the exchange is 100% confident about security following the hack. “Deposits already sent will still be processed, and after the required number of confirmations, they will be credited to accounts,” the firm added.

This story is developing and will be updated.

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