Deribit, the largest cryptocurrency options exchange, has suffered a $28 million hack, according to an announcement posted on Twitter.
It has temporarily halted withdrawals amid ongoing security checks. It is unclear when the exchange will be able to reopen them.
The trading platform says that its clients' funds are safe, adding that the losses have been covered by its own reserves, meaning that Deribit's insurance fund will not be affected by the hacking incident.
Deribit claims that it stores 99% of its customers' funds in cold storage addresses. The attacker managed to compromise the exchange's hot wallet.
The exchange has stressed that it remains in a strong financial position, and the recent hack will not affect its operations.Crypto options giant
According to data provided by the derivatives data platform Coinglass, Deribit continues to rule the roost in the cryptocurrency options sector. The Dutch derivatives exchange, which is currently based in Panama, has an 89.76% share of the total Bitcoin options interest. Chicago-based derivatives giant CME comes in second place with a 6.87% share of the market. Okex and FTX are also in the top five. Deribit has near-complete control over the Ethereum options market with a whopping 96.64% share.
The now-defunct hedge fund Three Arrows Capital (3AC) reportedly had a $500 million stake in Deribit, which is now the subject of behind-the-scenes drama.
Gamza Khanzadaev
Godfrey Benjamin
Tomiwabold Olajide
