DMMBitcoin announced a significant security breach on May 31 resulting in the theft of 4,502.9 BTC, valued at approximately $305M.
According to the announcement, DMM Bitcoin, a cryptocurrency exchange based in Japan, lost a significant amount of Bitcoin (BTC) from its wallet.
The cryptocurrency exchange discovered a security breach on May 31, 2024, when it discovered an unlawful withdrawal of 4,502.9 BTC. At the time, this amount was comparable to approximately 48.2 billion yen, which is equivalent to approximately $305 million.
DMMBitcoin Exchange $300M Bitcoin Hack
This incident has raised concerns within the bitcoin sector regarding the safety of the funds. The official statement from DMMBitcoin states that the “leak” occurred at approximately 1:26 p.m. local time.
The company showed a prompt response to the situation. DMMBitcoin has temporarily suspended several of its services.
These services include screening new accounts, withdrawing bitcoin, and opening new positions for leveraged trading. For this purpose, the company has stated its intention to purchase an equivalent amount of the stolen bitcoin with the assistance of other companies in the group.
Additionally, the company has pledged to fully reimburse all Bitcoin deposits in order to refund clients.We have closely examined the security protocols used by DMM Bitcoin.
The business asserts that it segregates customer assets from its own operational funds and maintains over 95 percent of customer assets in cold wallets, information storage systems disconnected from the internet to prevent unwanted access.
Despite these precautions, the significant amount of stolen Bitcoin indicates the existence of vulnerabilities that could have impacted both hot and cold storage systems.
Japanese Exchange Coincheck Hack
This is not an uncommon occurrence in the cryptocurrency market in Japan or anywhere else in the world. For instance, in January 2018, a hack on Coincheck, a prominent Japanese platform, led to the theft of NEM digital currency, valued at 58 billion yen.
Since then, in accordance with the restrictions imposed by the Financial Services Agency (FSA), the Japanese exchanges have been required to increase their level of security in order to prevent future incidents of a similar nature.
Recently, the DMMBitcoin Exchange experienced a hack, reinforcing the importance of security measures in the cryptocurrency sector.
This case underscores the challenges and dangers exchanges encounter in safeguarding customer funds from fraudsters.
The discovery of a more than 50% decrease in global cryptocurrency hacks in 2023 indicates that, despite the sector’s increasing safety, hacking remains a persistent threat.
As a result of this incident, DMM Bitcoin has taken action to halt withdrawals and prevent any further unauthorized outflow of its assets to users.
Additionally, the company has guaranteed users that they will receive a full refund. Investors who were already concerned about the news may find some solace in the fact that the corporation is willing to reimburse its consumers, in addition to the delay in responding to their inquiries.