DMM, a centralized cryptocurrency exchange, has suffered a significant loss of over $305 million worth of Bitcoin due to a breach in its servers on May 30. The exchange has confirmed this hack on its website and reassured users that all their deposits will be fully protected.
As a result of the security breach, DMM has temporarily suspended withdrawals, new account registrations, new spot buy orders, and all new leveraged orders. However, any limit orders that were already placed will not be canceled.
The attack came to the attention of crypto users when analytics platform Whale Alert reported on it via social media platform X at 10:14 pm UTC on May 30. The post stated that “4,502 #BTC (308,948,771 USD) transferred from an unknown wallet to an unknown new wallet.” Further blockchain data revealed that 4,502.9 BTC, equivalent to $305 million at current prices, had been moved from a single wallet.
Initially, the owner of the wallet was listed as “unknown” by Whale Alert. However, DMM later confirmed on its website that it had indeed lost exactly 4,502 BTC in the attack, indicating that this transaction was likely the cause.
DMM has taken immediate action to prevent any further unauthorized leaks and has pledged to procure the equivalent amount of BTC to compensate all affected users. The necessary funds will be obtained with the support of the group companies affiliated with DMM.
The exchange has urged users to stay updated by monitoring 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 remain a persistent issue for crypto exchange users. In November, Poloniex exchange suffered a loss of over $100 million when an attacker gained control of its private key. Similarly, GDAC experienced a similar attack in April 2023, resulting in losses of $14 million.
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