Crypto hack swipes US$28m from derivatives exchange Deribit

HACKERS inflicted more pain on the cryptocurrency sector by looting US$28 million from derivatives exchange Deribit in what’s shaping up to be a record year for thefts of virtual assets.

A wallet connected to the Internet was compromised on Tuesday (Nov 1), Deribit said on Twitter, adding that losses will be covered by company reserves and that other client funds are safe.

Deribit, one of the largest derivatives exchanges in crypto, said the firm’s procedure is to keep 99 per cent of user funds in so-called cold storage, or unconnected to the Internet, to limit the impact of hacks.

The attack is the latest in an ever-lengthening list of security incidents at crypto projects and protocols. More than US$3 billion has been hacked so far in 2022, which is on course to be a record year for exploits involving digital assets, according to blockchain specialist Chainalysis.

Deribit shared the current location of the funds that were spirited away. That shows that approximately 691 Bitcoins and 9,080 Ether have been taken.

Hacks have compounded an already difficult period for digital assets, which have shed about US$2 trillion in market value since a peak in November 2021. BLOOMBERG