Japan’s DMM Bitcoin, a crypto exchange based in Japan, recently experienced a significant hack resulting in the loss of 4,502.9 Bitcoin. In response to this unfortunate event, the exchange is planning to raise funds to acquire more BTC to compensate its customers.
According to a report by Bloomberg, DMM Bitcoin is considering raising 50 billion yen (approximately $321 million) to safeguard the world’s largest cryptocurrency from the impact of the hack. The exchange revealed that an investigation is currently underway regarding the unauthorized outflow that took place last week.
This incident has been identified as the seventh-largest crypto hack ever based on data from Chainalysis, with customer funds totaling $305 million being compromised. In a public statement, the company acknowledged the unauthorized leak of Bitcoin (BTC) from its wallet and assured customers that their deposits are fully guaranteed.
DMM Bitcoin has pledged to procure the equivalent amount of BTC that was leaked with the support of its partners. Following the hack, the Japanese Financial Services Agency has advised the exchange to disclose its customer compensation policies. Finance Minister Shunichi Suzuki has also emphasized the government’s commitment to preventing such incidents in the future.
Japan has seen other instances of crypto exchange hacks, similar to the situation faced by DMM Bitcoin. In August 2021, Tokyo-based exchange Liquid fell victim to a major hack where hackers breached its servers and stole cryptocurrencies worth at least $94 million. To mitigate the risk, the exchange transferred its remaining funds to cold wallets.
In 2018, the Japanese exchange Coincheck experienced a notable hack that compromised 523 million of the exchange’s NEM coins. These incidents highlight the importance of robust security measures in the crypto industry to protect customer funds and prevent unauthorized access.