DMM, a centralized cryptocurrency exchange, has suffered a major blow after losing over $305 million worth of Bitcoin in a server hack on May 30. The exchange acknowledged the breach on its website and assured users that all their deposits would be fully guaranteed.
As a result of the hack, DMM has temporarily suspended withdrawals, new account registrations, new spot buy orders, and all new leveraged orders. However, limit orders that were already placed will remain unaffected.
The attack caught the attention of crypto users, who began discussing it on social media platform X at 10:14 pm UTC on May 30. Whale Alert, an analytics platform, posted a tweet stating, “4,502 #BTC (308,948,771 USD) transferred from unknown wallet to unknown new wallet.” The tweet included a link to blockchain data that revealed the outflow of 4,502.9 BTC, equivalent to $305 million, from a single wallet.
Initially, the owner of the wallet was unknown, according to Whale Alert. However, DMM later confirmed on its website that it had lost exactly 4,502 BTC in the hack, suggesting that this particular transaction was the cause.
The exchange assured users that it had already taken measures to prevent any further unauthorized leaks. It plans to acquire the equivalent amount of BTC to compensate all affected users, with the support of its group companies.
DMM advised users to stay updated with their notices, as a new alert will be posted once all services resume.
DMM exchange is a subsidiary of the e-commerce conglomerate DMM Group and was launched in January 2018. The company also owns a cryptocurrency mining firm.
Unfortunately, hacks and scams continue to plague the crypto exchange industry. In November, Poloniex lost over $100 million when an attacker gained control of its private key. Similarly, GDAC suffered a similar attack in April 2023, resulting in $14 million in losses.
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