Japan-based crypto exchange DMM Bitcoin is planning to raise funds to purchase Bitcoin (BTC) following a major hack that resulted in the loss of 4,502.9 BTC last Friday.
According to Bloomberg, the exchange aims to raise 50 billion yen (approximately $321 million) to mitigate the impact of the hack on the world’s largest cryptocurrency. The company announced an ongoing investigation into the “unauthorized outflow” that occurred last week, which is considered the seventh-largest crypto hack ever, with $305 million worth of customer funds stolen.
In a public statement, DMM Bitcoin referred to the incident as an “unauthorized leak of Bitcoin (BTC) from our wallet.” The exchange assured customers that their Bitcoin deposits would be fully guaranteed, stating, “We will procure the equivalent amount of BTC that was leaked with support from our companies.”
Following the hack, Japan’s Financial Services Agency has requested DMM Bitcoin to provide a report on its customer compensation policies. Finance Minister Shunichi Suzuki emphasized the government’s commitment to preventing similar incidents on the country’s crypto exchanges.
Japan’s Crypto Heists
Japan has experienced several significant crypto exchange heists. In August 2021, Tokyo-based Liquid suffered a major hack, with attackers stealing cryptos worth at least $94 million. Hackers compromised Liquid’s ‘warm’ wallets, prompting the exchange to transfer remaining funds to cold wallets.
Another notable hack occurred in 2018 on Coincheck, where 523 million NEM coins were stolen.
These incidents highlight the ongoing security challenges faced by crypto exchanges in Japan and underscore the importance of stringent security measures to protect digital assets.
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