Cryptocurrency Options & Futures Exchange Deribit hot wallet compromised, but client funds are safe and loss is covered by company reserves.

Deribit hot wallet was hacked for USD 28m earlier this evening just before midnight UTC on 1 November 2022.

Client assets, Fireblocks or any of the cold storage addresses are not affected.It's company procedure to keep 99% of user funds in cold storage to limit the impact of these type of events.

The hack is isolated & quarantined to BTC, ETH and USDC hot wallets. Deposits already sent will still be processed and after the required number of confirmations, they will be credited to accounts.

“Deposits & withdrawals We are performing ongoing security checks and have to halt withdrawals including third-party custodians Copper Clearloop and Cobo until we are confident all is safe to re-open.We have raised the minimum number of confirmations for the moment causing a delay in crediting funds. Until we open wallets again we request you not to send new deposits.”

The insurance fund will not be impacted, the loss will be paid by company reserves. Deribit remains in a financially sound position and ongoing operations will not be impacted. There has not been any connection breach to client servers.