DMM Bitcoin Outlines Plan to Cover $300 Million Bitcoin Hack

DMM Bitcoin announces plan to procure funds to cover losses from the theft of over $300 million in bitcoin, ensuring users' deposits are fully guaranteed.

Key Insights

  • DMM Bitcoin announces plan to procure funds to cover $300 million bitcoin theft losses with support from DMM Group.
  • The crypto exchange has secured $32 million and plans to raise an additional $320.4 million by June 10.
  • DMM Bitcoin pledges to guarantee user deposits by procuring an equivalent amount of bitcoin, apologizing for the inconvenience caused.

TOKYO (MarketsXplora) – Japanese crypto exchange DMM Bitcoin has announced its plan to procure funds to cover losses from the theft of over $300 million in bitcoin last week, seeking to reassure users that their deposits will be fully guaranteed.

In a statement on its website on Wednesday, DMM Bitcoin detailed a schedule for securing the necessary funds with financial support from its group company, DMM Group, an electronic commerce and Internet company.

The crypto exchange said it had already procured 5 billion yen ($32 million) through borrowing as of June 3. A further capital increase of 48 billion yen ($307.6 million) is scheduled for June 7, followed by subordinated borrowing of 2 billion yen ($12.8 million) on June 10, bringing the total funds to $352.4 million.

DMM Bitcoin stated that it will “proceed with the procurement of the equivalent amount of bitcoin while taking care not to impact the market.” The company also apologized for the “great inconvenience and concern” caused to its customers and said it was continuing to investigate the hack.

At the time of the hack attack, DMM Bitcoin reported that 4,502.9 BTC ($306 million) had been stolen in an “unauthorized outflow of funds.” The company quickly sought to reassure users, stating it would guarantee the full amount of their deposits by procuring an equivalent amount of bitcoin.

According to crypto forensics firm Elliptic, the exploit ranks as the “eighth largest crypto theft of all time, and the largest since the $477 million hack suffered by FTX, in November 2022.”

The recent hack has once again highlighted the vulnerability of cryptocurrency exchanges to cyber-attacks and the importance of robust security measures to protect users’ funds.

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