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Recently hacked Japanese cryptocurrency exchange, DMM Bitcoin, has announced plans to raise over $300 million through several fundraising initiatives. DMM Bitcoin intends to use the funds to compensate users affected by the infamous 4,502 BTC hack (nearly $305 million) on the exchange. 
Also Read: <a href="https://www.cryptopolitan.com/dmm-bitcoin-to-repay-users-after-300m-hack/">Crypto Exchange DMM Bitcoin Vows To Repay Users After $300M Hack</a> 
In a June 5 <a href="https://bitcoin-dmm-com.translate.goog/news/20240605_01?_x_tr_sl=auto&amp;_x_tr_tl=en&amp;_x_tr_hl=en&amp;_x_tr_pto=wapp" rel="nofollow noopener" target="_blank">statement</a>, the exchange said it secured a 5 billion yen ($32 million) loan on June 3 and plans to raise an additional 48 billion yen ($308 million) by June 7. Furthermore, DMM Bitcoin intends to obtain an extra 2 billion yen ($12.8 million) through subordinated loans on June 10. 
The company said its planned BTC purchase would be done in a manner that does not significantly impact the market. It also revealed that its fundraising efforts are backed by support from its “group companies.” DMM Bitcoin is a subsidiary of DMM Financial, which is part of DMM Group, a conglomerate established in 1999. 
<h2 id="dmm-bitcoin-s-exploit-ranks-as-6th-largest-crypto-hack">DMM Bitcoin’s exploit ranks as 6th largest crypto hack</h2> 
While information remains sparse about the cause of the May 31 breach, blockchain security firm, Beosin, <a href="https://x.com/BeosinAlert/status/1796574567571583379" rel="nofollow" target="_blank">suggested</a> that DMM Bitcoin’s multi-sig private key might have been compromised or that the exchange wallet controller was a victim of an address spoofing scam. 
Meanwhile, DMM Bitcoin said it was continuing its investigation into the breach and has promised to provide further details once the investigation is complete. Arkham Intelligence, a blockchain analytical platform, has offered a bounty to help identify the attackers. 
DMM’s hack ranks among the largest cryptocurrency hacks in history, with blockchain security firm, CertiK, <a href="https://x.com/CertiKAlert/status/1797994046469894296" rel="nofollow" target="_blank">saying</a> that it is the sixth-largest incident the industry has recorded in the last three years. During this period, the crypto space saw the Ronin Network hack of $620 million and a $400 million hacking incident involving the bankrupt FTX exchange. 
<figure id="attachment_536493" aria-describedby="caption-attachment-536493" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="wp-image-536493 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/06/GPO_iRGX0AAv7Me.png" alt="DMM Bitcoin propels crypto losses" width="350" height="362" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/06/GPO_iRGX0AAv7Me.png 350w, https://www.cryptopolitan.com/wp-content/uploads/2024/06/GPO_iRGX0AAv7Me-290x300.png 290w" sizes="(max-width: 350px) 100vw, 350px">
 <figcaption id="caption-attachment-536493" class="wp-caption-text">
 Monthly crypto losses in 2024 (Source: CertiK)
 </figcaption>
</figure> 
Meanwhile, the DMM hack pushed the total crypto thefts this year to $821 million, with May seeing the biggest monthly loss. 
<h2 id="analyst-says-dmm-s-btc-purchase-will-boost-prices">Analyst says DMM’s BTC purchase will boost prices</h2> 
In a June 5 post on X (formerly Twitter), crypto analyst, Guanyuhan, predicted that the DMM’s planned BTC purchase would positively impact the market because the firm would mostly buy the assets at a premium. 
Also Read: <a href="https://www.cryptopolitan.com/bitcoin-reach-71k-inflows-into-spot-etfs/">Bitcoin rises above $71k after massive inflows into spot ETFs</a> 
<blockquote> 
 “The possibility that [DMM] can only buy in the Japanese market with poor liquidity means that they need to buy at a premium higher than the international price. This premium will eventually be reflected in the Japanese exchanges.” 
 Guanyuhan 
</blockquote> 
Consequently, arbitrageurs would try to take advantage of the high prices on these Japanese platforms, thereby further increasing prices worldwide, he added. Guanyuhan concluded that “from the perspective of supply and demand principle, this DMM operation will lead to a surge, but the risk must be controlled.”

DMM Bitcoin to raise over $300M for BTC buyback to compensate victims

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