2024

Bitcoin

Terra

<h4 class="wp-block-heading">Hackers stole all customer Bitcoin deposited in a Japanese exchange, but the platform promised to reimburse all users in full after the incident.</h4> 
<h2 class="wp-block-heading" id="massive-crypto-heist-hits-dmmbitcoin">Massive Crypto Heist Hits DMMBitcoin</h2> 
<p>Japanese crypto exchange DMMBitcoin suffered a hack on May 31, losing some 4,502.9 Bitcoin (BTC) worth around $308 million to bad actors in crypto’s seventh largest hack and the biggest heist since December 2022, per Chainalysis.</p> 
<p>The company imposed restrictions on services like withdrawals, spot trading buys, new <a href="https://btc-pulse.com/bitcoins-price-poised-or-new-ath-after-67500/">leveraged </a>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. At press time, DMM had not disclosed details of the vulnerability exploited by hackers during the “unauthorized leak.”</p> 
<h2 class="wp-block-heading" id="reimbursements-and-compliance-with-local-law">Reimbursements and Compliance with Local Law</h2> 
<p>According to a notice, full reimbursements are <a href="https://btc-pulse.com/layerzero-confirms-snapshot-airdrop-hintingtoken/">possible </a>due to compliance with local law. Japanese rules require virtual asset service providers to manage corporate liquidity separately from user funds.</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.</p> 
<h2 class="wp-block-heading" id="the-risks-of-centralized-crypto-custody">The Risks of Centralized Crypto Custody</h2> 
<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 <a href="https://x.com/btc_dan/status/1796538854230597826" target="_blank">hacks</a>, theft, and bankruptcy.</p> 
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   <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="noopener">#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">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="noopener">May 31, 2024</a>
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<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 Terra and FTX contagion, the issue has claimed a spotlight among burning crypto concerns.</p> 
<h2 class="wp-block-heading" id="advocacy-for-self-custody">Advocacy for Self-Custody</h2> 
<p>Many participants staunchly advocate for self-custody and keeping assets on decentralized solutions like MetaMask or in cold storage.</p>

Japan’s DMMBitcoin to Match Outflows After $308M Hack

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