2024

Bitcoin

Terra

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<p class="is-style-lead">Hackers stole all customer Bitcoin deposited in a Japanese exchange, but the platform promised to reimburse all users in full after the incident.</p> 
<p>Japanese crypto exchange DMMBitcoin suffered a hack on May 31, losing some 4,502.9 Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="">BTC</a>) worth around $308 million to bad actors in crypto’s seventh largest hack and the biggest heist since December 2022, per Chainlysis. </p> 
<p>The company <a href="https://coinpost.jp/?p=534799" target="_blank" rel="">imposed</a> restrictions on services like withdrawals, spot trading buys, new leveraged positions, and new user onboarding till further notice to stem more outflows. </p> 
<p>Outflows may have originated from hot wallets used for frequent transactions but the platform did not rule out a compromise of one of its cold storage solutions.&nbsp;At press time, DMM had not disclosed details of the vulnerability exploited by hackers during the “unauthorized leak”.&nbsp;</p> 
<p>According to a notice, full reimbursements are possible due to compliance with local law. Japanese rules require virtual asset service providers to manage corporate liquidity separately from user funds.&nbsp; </p> 
<p> You might also like: <a href="https://crypto.news/how-to-safeguard-assets-if-your-crypto-exchange-is-in-trouble/" rel=""> How to safeguard assets if your crypto exchange is in trouble </a> </p> 
<h2 class="wp-block-heading" id="should-users-custody-bitcoin-on-crypto-exchanges">Should users custody Bitcoin on crypto exchanges?</h2> 
<p>The leak underscores a popular question within the crypto community, whether users should store funds on crypto exchanges long-term. Experts have often argued that centralized exchanges aren’t banks, and users shouldn’t leverage these platforms for digital asset storage.</p> 
<p>As the pro-self-custody saying goes – “Not your keys, not your coins”. Another issue highlighted by the DMM incident is exchanges managing user deposits in-house.&nbsp;</p> 
<p>Crypto exchanges are typically used for quick transactions across multiple decentralized networks for a basket of digital tokens. In a sense, exchange handling customer crypto custody expedites this process but also runs the risk of hacks, theft, and bankruptcy.&nbsp;</p> 
<p>The 850,000 Mt Gox Bitcoin hack in 2014 was an early example of the risks of keeping crypto on centralized platforms. Following suspended withdrawals throughout the 2022/2023 <a href="https://crypto.news/?s=Terra" target="_blank" rel="">Terra</a> and <a href="https://crypto.news/?s=FTX" target="_blank" rel="">FTX</a> contagion, the issue has claimed a spotlight among burning crypto concerns.</p> 
<p>Many participants staunchly advocate for self-custody and keeping assets on decentralized solutions like MetaMask or in cold storage.&nbsp;</p> 
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Another exchange hacked. 4,502 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#Bitcoin</a> gone.<br><br>Not your keys, not your coins. Don't leave your coins on an exchange. <a href="https://t.co/kTnKkIR43A" target="_blank" rel="">https://t.co/kTnKkIR43A</a></p>— Dan (@btc_dan) <a href="https://twitter.com/btc_dan/status/1796538854230597826?ref_src=twsrc%5Etfw" target="_blank" rel="">May 31, 2024</a>
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<p> Read more: <a href="https://crypto.news/staying-safe-in-web3-your-guide-to-dapps-security/" rel=""> Staying safe in web3: your guide to dapps security </a> </p>

Japan’s DMMBitcoin to match outflows after $308m hack

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