DMM, the cryptocurrency division of Japanese internet giant DMM.com, announced on Friday that more than $300 million worth of bitcoins had been stolen in a major security breach.
The exchange confirmed the incident but did not explain how the assets were stolen. DMM Bitcoin abruptly froze most of its services, including deposits, withdrawals, and trading of almost all cryptocurrencies.
“At approximately 1:26 pm on Friday, May 31, 2024, we detected an unauthorized leak of bitcoin from our wallet,” DMM Bitcoin stated. The ad, originally in Japanese, was translated into English and posted on the company's website.
The exchange reported that 4,502.9 bitcoins, worth approximately $306 million, had been taken in the breach. DMM Bitcoin assured its customers that their bitcoin deposits would be refunded in full. “Rest assured, all your bitcoin deposits will be fully guaranteed as we will acquire the equivalent amount of BTC that was leaked with the support of our group companies,” the statement reads.
In a blog post on its website, DMM Bitcoin reiterated that measures had been taken to prevent further unauthorized outflows. The exchange restricted all spot purchases on the platform and warned that withdrawals in Japanese yen could take longer than usual due to the incident.
In 2018, rival exchange Coincheck suffered one of the largest attacks in the history of the industry, losing around $534 million worth of (XEM) from its hot wallet. At that time, the Monex Group subsidiary spent several weeks trying to identify the attackers and understand how the hack occurred.
The Coincheck hack had wide-ranging repercussions for both the company and the Japanese cryptocurrency industry as a whole. Furthermore, his reputation was severely damaged due to the hack. In addition to financial losses, the company faced widespread criticism for its inadequate security measures and failure to safeguard user funds.
