Bitcoin

Ronin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>DMM Bitcoin, a Japanese crypto exchange, plans to raise $320 million to compensate users after a $320 million Bitcoin (BTC) hack.</li> 
 <li>The company will procure an equivalent amount of Bitcoin (BTC) from its group company, DMM.com, to recover the stolen funds.</li> 
</ul> 
<p> DMM Bitcoin, a Japanese cryptocurrency exchange platform, recently fell victim to a significant hacking incident. The cybercriminals managed to steal Bitcoin (BTC) worth $320 million. The company now intends to raise 50 billion yen, equivalent to $320 million, to reimburse its users for their losses. </p> 
<h2 id="investigation-and-compensation">Investigation and Compensation</h2> 
<p>On June 5, DMM Bitcoin issued a statement outlining its recovery plan. The company plans to acquire an equivalent amount of <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin (BTC)</a> from its group company DMM.com, to replace the stolen customer funds. The company reassured its users that it would carefully manage the planned purchases to minimize any potential market impact. </p> 
<p>The exchange platform is currently investigating the unauthorized outflow of 4,503 BTC that occurred on May 31. The company apologized for the situation and its impact on its customers. It pledged to continue probing the cause of the unauthorized outflow and to keep the public informed of any new developments. </p> 
<h2 id="funding-the-recovery">Funding the Recovery</h2> 
<p>To finance the necessary compensation, DMM Bitcoin borrowed five billion yen ($32 million) on June 3. The company has planned a further capital increase of 48 billion yen ($308 million) for June 7 and an additional 2 billion yen ($12.8 million) through subordinated debt financing on June 10. This financial support and recovery fund accumulation are sourced from DMM.com, ensuring the necessary funds to secure customers’ Bitcoin holdings. </p> 
<p>The DMM Bitcoin incident is ranked as the eighth-largest cryptocurrency hack in history and is among the top 10 biggest crypto exchange hacks of all time. The largest of these was the March 2022 Ronin Network hack, which exploited the network’s validator nodes, resulting in the theft of $620 million. This incident led Ronin to significantly enhance their security measures, introduce $1 million bug bounties, and double their validator nodes to prevent a recurrence.</p>

Crypto Exchange in Japan Secures $320M for Post-Hack Fund Recovery

Table of Contents

crypto.ro global

Other articles published on Jun 5, 2024

Federal Court Overturns SEC Rules on Private Fund Fee Disclosures

Pavel Durov announced a fourfold increase in the value of his NOT tokens.

SEALSQ Corp Partners with The Hashgraph Association to Drive IoT and DePIN Solutions in Saudi Arabia

Microsoft India X hacked, Beware of fake GME crypto pre-sale!

LDO, RPL, and JTO: The Definitive Guide to Maximizing Returns in Liquid Staking

BlackRock ETFs Increase MicroStrategy’s exposure

Join our free newsletter for daily crypto updates!