DMM Bitcoin, hacked for $320 million worth of BTC, aims to raise 50 billion yen to compensate users by acquiring Bitcoin from its parent company, DMM.com.
A Japanese crypto exchange, DMM Bitcoin, was recently attacked, resulting in the theft of $320 million in Bitcoin (BTC). To compensate users for their losses, the company intends to raise 50 billion yen ($320 million).
DMM Bitcoin disclosed in a June 5 statement that it would obtain an equivalent quantity of Bitcoin from its parent company, DMM.com, to reclaim misappropriated customer funds.
DMM Bitcoin guaranteed users that it would “take care” to mitigate the market impact of the planned purchases in the statement.
Following the “unauthorized outflow” equivalent of 4,503 BTC on May 31, the company also disclosed that its investigation is still ongoing.
DMM Bitcoin expressed its “heartfelt” apologies for the situation and its impact on its clients, and it pledged to “persist in the investigation of the unauthorized outflow.“
The company also declared that it will promptly notify the public of any new information as soon as it surfaces.
On June 3, DMM Bitcoin borrowed five billion yen ($32 million) to finance the compensation necessary to reimburse consumers.
June 7 will see an additional 48 billion yen ($308 million) in capital increase, and June 10 will see an additional 2 billion yen ($12.8 million) in subordinated debt financing.
This financial support and recovery fund accumulation is provided by DMM.com and will guarantee the requisite funds to “uphold customers’ Bitcoin holdings.”
The DMM Bitcoin incident is one of the top 10 largest crypto exchange breaches of all time, and it is ranked as the eighth-largest cryptocurrency hack in history.
The Ronin Network breach of March 2022, which resulted in the theft of $620 million, was the first to exploit the network’s validator nodes.
This prompted Ronin to substantially enhance their security measures, introduce $1 million bug bounties, and double their validator nodes in order to prevent it from reoccurring.