One of the fears people have when they invest in cryptocurrencies is of a privacy or security breach. It’s the last thing you want to happen to the broker or exchange you have signed up with.
Deribit is a crypto exchange in Panama where you can sign up for options and futures trading in the digital currency market. Unfortunately, the exchange has been a victim of a painful hack.
Crypto Worth $28 Million Gone
Before you even begin crypto trading, the experts tell you to not keep your money in hot wallets. It’s always the hot wallets that get hacked and the scenario wasn’t different here either.
$28 million worth of Ethereum and Bitcoin in the hot wallets of the company were taken away at midnight. If you had funds stored in the hot wallet on Deribit, you might want to check it out as soon as possible.
It needs to be mentioned here that the hack took place specifically in USDC, Ethereum, and Bitcoin wallets of the company. The $28 million include 691 Bitcoins that the hacker took and hasn’t yet been caught or traced.
Deribit showed professionalism and announced the breach on Twitter before waiting too long. It also posted statements that were reassuring for the worried investors who had been using the exchange for crypto trading.
Users’ Funds Are Safe Deribit Says
According to Deribit, its users don’t have to worry as their funds are safe with the company. Not many crypto brokers and exchanges are in the position to recover from such a big loss, but this exchange was surely prepared.
Per the posts on Twitter, the company will compensate for the loss from its own funds. The officials believe that they will not even have to affect the insurance policy in recovering from this loss.
The deposits and withdrawals in the wallets did stop momentarily but that’s about it. Users are happy their money is safe, but it will surely put them in doubts about the company’s cybersecurity protocols.
Despite officials at the company taking quick action, users’ faith has now been shaken and only time will tell how well the exchange is able to keep its operations running successfully.
