Main navigation

Breaking: Largest Cryptocurrency Options Exchange Deribit Suffers $28 Million Hack

Wed, 11/02/2022 - 07:27
article image
Alex Dovbnya
Deribit's hot wallet has been drained of $28 million worth of crypto
Breaking: Largest Cryptocurrency Options Exchange Deribit Suffers $28 Million Hack
Cover image via U.Today
Read U.TODAY on
Google News

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. 

Related
Former Ripple CTO Teases New Project That Will Use XRP
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.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.