"$28 Million Stolen From Cryptocurrency Platform Deribit"
Deribit, a cryptocurrency derivatives platform, has confirmed that a hacker stole $28 million from the company, forcing it to suspend withdrawals while investigating the incident. Deribit is a Panama City-based cryptocurrency futures and options exchange that allows customers to trade perpetual, futures, and options contracts. The company stated that its reserves will cover the losses and that 99 percent of user funds are kept in "cold storage" to protect against this type of attack. Hot wallets for cryptocurrency are connected to the Internet via a phone or computer, whereas cold wallets are assets stored in hardware devices that are not connected to the Internet. The company did not respond to inquiries about how the hack occurred or whether they are in contact with the hacker. However, Deribit posted a link to the location of the stolen funds on Twitter. According to the blockchain security firm PeckShield, the hack involved the theft of about 9,080 ETH worth nearly $14.2 million, as well as around 691 BTC worth another $14.1 million. A Deribit spokesperson stated that withdrawals will be reopened eventually but that all Deribit deposit addresses for BTC, ETH, and USDC will need to be regenerated. According to Peckshield, October was a particularly difficult month for cryptocurrency platforms, with 53 protocols suffering losses totaling $760.2 million. So far, in 2022, an estimated $3 billion has been siphoned from cryptocurrency firms, with losses doubling from the previous year. As the ecosystem grows in value and complexity, technical and operational solutions are needed to scale with it. Alex Zinder, global head of blockchain security company Ledger Enterprise, also emphasized that October was one of the busiest months for cryptocurrency hacking, with around $718 million lost in the first week alone. It is critical to educate the market on security best practices at scale, but collective support from the ecosystem is also required to help raise the bar as hackers become increasingly sophisticated. This article continues to discuss the hacking incident faced by Deribit that resulted in the theft of $28 million.
The Record reports "$28 Million Stolen From Cryptocurrency Platform Deribit"