In a huge setback to the topsy-turvy global crypto market, world’s leading crypto exchange Deribit has fallen prey to new-age hackers. The company took to Twitter to disclose that it has lost a staggering $28M due to this hot wallet hack. It goes without saying that this shocking crypto news raised a hue and cry, globally, and sent shockwaves among the crypto investors. The Deribit hack will have strong implications on not only the global crypto market, which is trying to recover from the last crash, but also on the world economy in general. Let’s discuss in detail what does this Deribit hot wallet hack mean to the market and the other important aspects of this sensational crypto news. 

Deribit Hot Wallet Hack

The Deribit Hot Wallet Hack adds to the woes of the global crypto market, which is already marred by the ongoing bear run.

Deribit Hot Wallet Hack: Rubbing Salt into the Wound 

The crypto exchanges have had a dream run right after the arrival of the Covid-19 pandemic, which saw prices of some of the crypto assets rise astronomical figures and that too at a skyrocketing speed. But it was short-lived and was followed by the worst ever crash in the history of the crypto market. 

During that phase, almost all the cryptocurrencies hit rock bottom, which fueled the mass opinion that the crypto market is done and dusted. However, with the passage of time, the global crypto market seemed to rise from the ruins and the rebuilding phase still continues. But we should keep in mind that it’s still bearish in nature and remains extremely volatile. The scars of the worst crypto crash ever, which wiped out billions of investor wealth, are still fresh and continue to bleed. To add the woes, just a few months back, it came to light that Bitcoin, the most popular cryptocurrency in the world, has plunged 58% down, its worst quarterly drop in the last 11 years. 

In such a volatile scenario, the Deribit hack comes as a severe gash to the crypto market. For quite obvious reasons, crypto investors have got panic stricken. The Deribit hot wallet hack has swiped away a whopping $28M after which Deribit paused withdrawals, a move which has only increased panic but was wise enough to stop the bloodbath. 

Deribit Paused Withdrawals

Deribit paused withdrawals immediately after $28M was wiped out by an unidentified hacker.

Didn’t We See It Coming?

Let’s have a quick recap of the events which unfolded prior to this $28M Deribit hack. Nearly a month ago, cybersecurity giant Kaspersky Labs came up with a cybersecurity challenge report, which revealed that more than 90% of the global business were not prepared to tackle the upcoming cyber-attacks. Shortly afterwards, a new malware strain called Maggie ran riot through Microsoft SQL servers, across the globe. Just a few days back, Azov ransomware tore apart the tech-world and left us perplexed, framing leading cybersecurity researchers in the process. 

Hence, the cloud of a lethal cyber-threat was looming large. But we didn’t pay enough heed to the red flags. In its quick response to the $28M Deribit hot wallet hack, Deribit paused withdrawals and declared that all of the investors’ wealth are safe, only the company has suffered the loss. It also informed that Deribit has solved the crisis by using funds from its reserves. 

It’s high-time that businesses bolster their cyber protection systems, otherwise, they have to learn it the hard way like Deribit. We need to wait for some trading days, to assess how the market reacts to this terrible crypto news.