Bitcoin
Japanese Exchange DMM Bitcoin Loses $305 Million to Hackers By Investing.com
DMM, the cryptocurrency arm of Japanese internet giant DMM.com, announced on Friday that more than $300 million worth of bitcoin was stolen in a major security breach.
The exchange confirmed the incident, but did not explain how the goods were stolen. DMM Bitcoin has abruptly frozen most of its services, including deposits, withdrawals and trading of almost all cryptocurrencies.
“At approximately 1:26 pm on Friday, May 31, 2024, we detected an unauthorized leak of bitcoin from our wallet,” stated DMM Bitcoin. The ad, originally in Japanese, was translated into English and published on the company’s website.
The exchange reported that 4,502.9 bitcoins, worth approximately $306 million, were stolen in the breach. DMM Bitcoin assured its customers that their bitcoin deposits would be fully refunded. “Rest assured that all your bitcoin deposits will be fully guaranteed, as we will acquire the equivalent amount of leaked BTC with the support of our group companies,” the statement read.
In a post on its website, DMM Bitcoin reiterated that measures have been taken to prevent further unauthorized exits. The exchange has restricted all cash purchases on the platform and warned that Japanese yen withdrawals may take longer than usual due to the incident.
In 2018, rival exchange Coincheck suffered one of the biggest hacks in the industry’s history, losing around $534 million worth of (XEM) from its hot wallet. At the time, the Monex Group subsidiary spent several weeks trying to identify the attackers and understand how the hack occurred.
The Coincheck hack had wide-ranging repercussions for both the company and the Japanese cryptocurrency industry in general. Furthermore, its reputation was severely damaged due to the hack. In addition to financial losses, the company faced widespread criticism for its inadequate security measures and failure to safeguard users’ funds.