DMM Bitcoin, a crypto exchange based in Japan, was recently the target of a hacking incident that resulted in the loss of $320 million worth of Bitcoin. To compensate its users for their losses, the company plans to raise 50 billion yen ($320 million).
In a statement released on June 5, DMM Bitcoin announced its intention to recover the stolen customer funds by obtaining an equivalent amount of Bitcoin from its sister company, DMM.com. The company reassured users that it would take measures to minimize any negative impact on the market as a result of these planned purchases.
DMM Bitcoin is currently conducting an investigation into the unauthorized outflow of 4,503 BTC that occurred on May 31. The company deeply apologized for the situation and acknowledged the impact it has had on its customers. It pledged to continue investigating the cause of the unauthorized outflow and promised to promptly inform the public of any new developments.
To secure the necessary funds for customer compensation, DMM Bitcoin borrowed five billion yen ($32 million) on June 3. An additional capital increase of 48 billion yen ($308 million) is scheduled for June 7, and an extra 2 billion yen ($12.8 million) will be obtained through subordinated debt financing on June 10. These funds, provided by DMM.com, will ensure that customers’ Bitcoin holdings are guaranteed.
The hacking incident at 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 largest hack to date occurred in March 2022, when the Ronin Network was exploited, resulting in the theft of $620 million. In response, Ronin has significantly enhanced its security measures, introduced a $1 million bug bounty program, and doubled its validator nodes to prevent such incidents from happening again.