Japanese Exchange DMM Bitcoin Reports $308 Million Loss After Hack

Japanese DMM Exchange

Details of DMM Bitcoin Hack

KANALCOIN NEWS – Japanese exchange DMM Bitcoin recently suffered a significant blow as hackers stole over $300 million worth of Bitcoin from its primary wallet. This incident has quickly become one of the largest hacks in the digital asset industry in recent years. The hack was discovered around 1:30 pm local time when approximately 4,503 BTC, valued at $308 million at that time, were “illegally leaked” from the exchange’s wallet. The company is currently investigating the matter and has implemented measures to prevent similar attacks in the future.

Impact on DMM Bitcoin and Customers

In response to the hack, DMM Bitcoin has assured its customers that it will guarantee the full amount of Bitcoin that was stolen. However, the exchange has temporarily restricted spot buys and the opening of leveraged trading positions. Additionally, the processing of crypto withdrawals has been suspended, although withdrawals of Japanese Yen are still permitted.

Comparison with Previous Crypto Hacks

The recent hack on DMM Bitcoin stands out as one of the largest in Japan’s history. In 2018, Coincheck, one of the country’s largest exchanges, fell victim to hackers who made off with over $550 million worth of XEM. When compared to other notable hacks, this incident ranks as the eighth-largest crypto theft of all time.

It is worth noting that 2022 saw a string of massive exploits targeting various layer-1 blockchains, sidechains, crypto exchanges, and DeFi protocols. The most significant hack that year involved the BNB Chain, previously known as the Binance Smart Chain, where approximately $566 million worth of BNB was stolen. These events highlight the ongoing vulnerability of the crypto industry to sophisticated hacking attempts.

Industry Response and Analysis

DMM Bitcoin issued an apology to its users for the hack, emphasizing their commitment to resolving the situation and ensuring the security of customer funds. The exchange has sought support from its group companies to procure an equivalent amount of Bitcoin to compensate for the outflow.

Blockchain analytics firm Elliptic provided insights into the flow of stolen funds, revealing that the hacker divided the stolen Bitcoin into batches of 500 BTC across ten different wallets. These findings contribute to the ongoing investigation into the incident.

The DMM Bitcoin hack serves as a reminder of the importance of robust security measures within the cryptocurrency industry. As the industry continues to grow, it must continually reassess and enhance its security protocols to safeguard customer assets and maintain investor confidence.

In conclusion, the recent hack on DMM Bitcoin has resulted in a significant loss of $308 million worth of Bitcoin. The breach highlights the need for heightened security measures and raises concerns about the overall security of the digital asset industry. DMM Bitcoin is taking immediate steps to address the incident and prevent similar attacks in the future. Industry experts and authorities will closely analyze this hack and its implications for investor confidence in the cryptocurrency market.


Redaksi Media
Author: Redaksi Media

Cryptocurrency Media

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