Key Takeaways:
- DMM Bitcoin lost $320 million (4,503 BTC) in a recent hack, the eighth-largest in crypto exchange history.
- To compensate affected users, DMM Bitcoin will raise 50 billion yen ($320 million) from its group company, DMM.com.
- The exchange is investigating the hack and has borrowed 5 billion yen with plans to raise an additional 50 billion yen for compensation.
DMM Bitcoin, a Japanese crypto exchange, was recently hacked, resulting in a loss of $320 million worth of Bitcoin (4,503 BTC).
To compensate affected users, DMM Bitcoin plans to raise 50 billion yen ($320 million) by procuring Bitcoin from its group company, DMM.com.
Japanese crypto exchange DMM Bitcoin plans to raise 50 billion yen ($321 million) and plow the funds into buying the largest digital asset to make customers whole after suffering a major hack https://t.co/nwDj7QvqMa
— Bloomberg Crypto (@crypto) June 5, 2024
The exchange assured users that it will minimize market impact during the recovery process and is currently investigating the unauthorized outflow, which occurred on May 31.
DMM Bitcoin apologized deeply for the incident and promised to keep the public informed about any new developments.
DMM BITCOIN ANNOUNCES TO RAISE $320M TO COMPENSATE USERS AFTER RECENT $320M HACK
— BSCN (@BSCNews) June 5, 2024
– @DMM_Bitcoin, the Japanese crypto exchange, victim of a recent $320 million hack, plans to raise 50 billion yen ($320 million) to compensate affected customers.
Key Points:
– DMM Bitcoin… https://t.co/dA9Ih82DH7 pic.twitter.com/DbGMfiLVEZ
To fund the compensation, DMM Bitcoin has borrowed five billion yen ($32 million) and will raise an additional 48 billion yen ($308 million) on June 7 and 2 billion yen ($12.8 million) through subordinated debt financing on June 10.
This financial support comes from DMM.com.
Japanese crypto exchange DMM Bitcoin outlines funding plan to cover over $300 million in hack losses https://t.co/Ckz610Hphs
— The Block (@TheBlock__) June 5, 2024
The hack ranks as the eighth-largest cryptocurrency exchange hack in history.
The largest was the Ronin Network hack in March 2022, which resulted in a theft of $620 million and led to significant security upgrades by Ronin.
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