Deribit Exchange has announced that it suffered an exploit on its hot wallet in the late hours of Tuesday, placing the trading platform among the list of crypto projects that have suffered a similar fate this year.

Taking to his official Twitter account, to announce The sad event, said the exchange, although the cited loss is true, that its users will not be affected, since it will cover the loss of its deep reserve.

“Deribit’s hot wallet is compromised, but customer funds are safe and losses are covered by company reserves. Our hot wallet was hacked for $28 million tonight, just before midnight UTC on November 1, 2022,” read the exchange’s tweet.

Deribit said that aside from the hot wallet, none of its other wallets controlled with Fireblocks or other cold storage were affected. He noted that it has become a matter of policy to safeguard 99% of its users’ funds in cold storage to reduce the potential impacts of these events.

Deribit is one of the biggest players in the world of Derivatives, currently ranked 8th according to data from CoinMarketCap. The exchange said that in a bid to refine its security systems, it had to pause major activities on its platform, including withdrawals at its “third-party custodians Copper Clearloop and Cobo until we are confident everything is safe to reopen.”

The exchange detailed that it has increased the number of confirmations required for deposits and that already initiated deposits will be credited to all user accounts after the required number of confirmations.

Exchanges have been a very fertile ground for hackers this year who extend their disruptive activities beyond centralized trading platforms to their decentralized counterparts. From the Crypto.com hack to the Nomad Protocol hack, the trend has become a threat, calling for a security-focused solution to put an end to this current attack across the board.

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