2024-06-06
On May 31, 2024, DMM Bitcoin, a Japanese cryptocurrency exchange,
experienced a significant security breach.
It was reported that 4,502.9 Bitcoin (BTC), valued at about $305
million, were stolen from one of its wallets. This incident is considered the
eighth largest crypto theft in history.
The loss happened through private key hack.
Recently, DMM Bitcoin has announced plans to raise 50 billion yen
($320 million) to compensate users for their losses following the hack.
The unauthorized outflow of 4,503 BTC occurred on May 31, 2024, and
the company has since been working on a recovery strategy to restore trust and
ensure customers’ Bitcoin holdings are secured.
To finance the compensation efforts, DMM Bitcoin has taken a
multi-faceted approach. They secured a loan of 5 billion yen ($32 million) and
are planning a capital increase of 48 billion yen ($308 million) through
strategic partnerships and investor support.
And then DMM Bitcoin will purchase 4,503 BTC at the current Bitcoin
price of around $71k to compensate affected customers.
Additionally, they are considering subordinated debt financing to
accumulate the necessary funds.
The company has apologized for the incident and is committed to
minimizing market impact while procuring the equivalent amount of Bitcoin from
its group company, DMM.com.
They have also assured users that they will continue to investigate
the cause of the unauthorized outflow and promptly inform the public of any new
details.
This incident is ranked as the eighth-largest cryptocurrency hack in
history, prompting DMM Bitcoin to enhance their cybersecurity infrastructure to
prevent future breaches.
Enhanced encryption protocols, multi-factor authentication, and
real-time threat monitoring are some of the measures being implemented to
fortify the exchange’s defenses against cyber threats.
