The world’s largest cryptocurrency derivatives exchange, Deribit, fell victim to a hack and lost a total of US$28 million or around R$145 million in ETH, USDC and BTC; understand where these funds have gone and see how to track them.
“Deribit hot wallet compromised, but customer funds are safe and the loss is covered by the company’s reserves,” Deribit said Wednesday. Our hot wallet was hacked at USD 28m earlier this evening just before midnight UTC on Nov 1, 2022” – informed the broker.
Hot Wallet is where brokers’ online funds are stored, usually used for customer withdrawals. According to Derbit, only 1% of the funds were in this walletthe rest remains in an offline wallet at security company Fireblocks.
“Deribit hot wallet compromised, but customer funds are safe and loss is covered by company reserves” – informed the broker.
Broker stops withdrawals, but they can come back today
The exchange reported that until all details of the hack are resolved, withdrawals would be stalled.
However, in an official statement on Twitter, it is stated that they intend to return to normal activities later today. Even some withdrawals from trading partners have already returned to normal.
Track stolen Deribit funds
By using transparent blockchain-based cryptocurrencies, the hacker’s every move can be seen live. Blockchain explorers like Etherscan in the case of Ethereum and Blockchair in the case of Bitcoin make it easy to see all the data related to the hacker’s transaction.
Other block explorers can even show transaction patterns based on time, day of the week, volumes by period and other metrics, as is the case with OXT. Exchanges have even more advanced software that cost tens of thousands of reais.
Possibly, if the hacker tries to exchange your cryptocurrencies for reais or dollars, he will be identified.
Broker is yet another addition to $2 billion stolen
With this hack, Deribit enters the ranking of stolen cryptocurrency companies and protocols in 2022.
According to data from ChainAlysis, more than $2 billion in funds have been stolen in cryptocurrency hacks. Most of the hacks happened in decentralized finance (DeFi) protocols.
However, as of June 2022 over $70 million has been stolen from traditional exchanges.