DMM Bitcoin, a crypto exchange based in Japan, recently fell victim to a hack that resulted in the loss of $320 million worth of Bitcoin. In order to compensate affected users, the exchange plans to raise 50 billion yen ($320 million).
In a statement released on June 5, DMM Bitcoin outlined its plan to recover the stolen funds by acquiring an equivalent amount of Bitcoin from its sister company, DMM.com. The exchange assured users that it would carefully manage the impact on the market during the planned purchases.
DMM Bitcoin also stated that its investigation into the incident is still ongoing. On May 31, an unauthorized outflow of 4,503 BTC occurred, leading to the current situation. The exchange deeply apologized for the incident and its impact on customers, emphasizing its commitment to determining the cause of the unauthorized outflow. Any new details discovered during the investigation will be promptly shared with the public.
To secure the necessary funds for compensating customers, DMM Bitcoin borrowed five billion yen ($32 million) on June 3. Additionally, it has scheduled a capital increase of 48 billion yen ($308 million) on June 7 and plans to raise an additional 2 billion yen ($12.8 million) through subordinated debt financing on June 10. These measures, supported by DMM.com, will ensure that the exchange has sufficient funds to guarantee customers’ Bitcoin holdings.
The hack on DMM Bitcoin ranks as the eighth-largest cryptocurrency hack in history and is among the top 10 biggest crypto exchange hacks of all time. The most significant hack to date occurred in March 2022 when the Ronin Network was exploited, resulting in the theft of $620 million. In response, Ronin has taken significant measures to enhance its security, including implementing $1 million bug bounties and doubling the number of validator nodes to prevent similar incidents in the future.