DMM Bitcoin, a prominent Japanese cryptocurrency exchange, has revealed plans to raise 50 billion yen ($321 million) to compensate users after a significant hack resulted in the loss of approximately $320 million worth of Bitcoin. This incident, which occurred on May 31, 2024, is currently under investigation, with the exchange committed to minimizing the impact on the Bitcoin market during the recovery process.
The Hack and Recovery Efforts
The hack, which saw 4,503 BTC stolen in an “unauthorized outflow of funds,” ranks as the eighth largest crypto theft in history, according to crypto forensics firm Elliptic. The exchange has assured users that it will fully compensate the stolen funds by acquiring an equivalent amount of Bitcoin through a structured financial strategy supported by its parent company, DMM Group.
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DMM Bitcoin has already procured 5 billion yen ($32 million) through borrowing on June 3 and plans to secure an additional 48 billion yen ($308 million) by June 7. Another 2 billion yen ($12.8 million) will be raised through subordinated debt financing on June 10. These measures aim to ensure the necessary funds to guarantee customers’ Bitcoin holdings and restore trust in the platform.
Ongoing Investigation
In a statement issued on June 5, DMM Bitcoin emphasized that a thorough investigation is underway to determine the cause of the unauthorized outflow. The company has promised to “take care” to avoid affecting the Bitcoin market with the planned purchases and is working diligently to prevent further incidents. Highlighting its commitment to resolving the issue and reinforcing security measures to prevent future breaches, the platform stated, “We deeply apologize for the great inconvenience and concern this situation has caused our customers.”
Major Crypto Hacks
This hack places DMM Bitcoin among the notable victims of significant crypto thefts. The largest recorded crypto theft occurred in November 2022, when FTX lost $477 million in a hack. Another major incident involved the hacking of Mt. Gox in 2014, which led to the loss of 850,000 BTC, worth approximately $450 million at that time.
