Key Insights:
- DMM Bitcoin lost 4,502.9 BTC worth $305 million in a major hack.
- The exchange has restricted spot buys and warned of delays in yen withdrawals.
- DMM Bitcoin guarantees to cover the full amount of stolen BTC with support from group companies.
Japanese cryptocurrency exchange DMM Bitcoin suffered a loss of 4,502.9 BTC, valued at $305 million. The exchange has implemented measures to prevent further unauthorized outflows.
According to CoinPost, DMMBitcoin, a cryptocurrency exchange under Japanese securities company DMM, was suspected of being hacked, and $300 million worth of Bitcoin may have been stolen. DMMBitcoin said it would purchase Bitcoin equivalent to the outflow amount and guarantee the…
— Wu Blockchain (@WuBlockchain) May 31, 2024
DMM Bitcoin confirmed in a blog post written in Japanese that the stolen Bitcoin was divided across ten wallets in batches of 500 BTC. Security firm Blocksec provided the data on the distribution of the stolen assets.
“Please be assured that we will procure the equivalent amount of BTC equivalent to the outflow with the support of the group companies and guarantee the full amount,” stated DMM Bitcoin. The exchange has restricted all spot buys and warned customers that yen withdrawals might face delays.
This hack is one of the largest in the history of cryptocurrency exchanges, with the loss representing 48 billion yen. The exchange has taken steps to prevent further unauthorized outflows and implemented restrictions on service usage to ensure additional security.
Customers have been informed that all BTC deposits will be fully guaranteed. The exchange is collaborating with its group companies to procure the equivalent amount of stolen BTC.
As a precautionary measure, DMM Bitcoin has halted new account screenings and frozen crypto withdrawals. Spot traders can only sell, not buy, any cryptocurrency, and leverage traders are restricted from opening new positions.
The exchange’s swift response and assurance that it will cover the losses aim to maintain customer trust and stability within the platform.
This breach follows a series of significant hacks in Japan, including the infamous Mt. Gox hack in 2014, which resulted in a $450 million loss, and the CoinCheck hack in 2018, which saw 58 billion yen ($532 million) stolen.
Recent hacks in the cryptocurrency sector have highlighted the ongoing security challenges. Before this theft, over $473 million had been lost to cryptocurrency hacks in 2024 alone.
