The incident occurred at Deribit before midnight UTC on Nov. 1, as confirmed by the company through its Twitter account.
The exchange assured its users that their funds are secure as the losses incurred from the hack will be covered by Deribit’s reserves. They mentioned:
“Client assets, Fireblocks, or any cold storage addresses remain unaffected. Our standard practice involves keeping 99% of user funds in cold storage to minimize the impact of such situations.”
As a precautionary measure, Deribit has temporarily suspended withdrawals, including those via custodians Copper Clearloop and Cobo, until they can guarantee 100% security post the security breach. They also mentioned that deposits that have already been initiated will still be processed and credited to accounts once the requisite confirmations are completed.
Image Source: dennizn / Shutterstock
