A hack on Friday cost Japanese Bitcoin exchange DMM 4,502.9 Bitcoin, including 48.2 billion yen ($305 million USD) in customer funds.
DMM confirmed the loss in a public statement, calling it an “unauthorized leak of Bitcoin (BTC) from our wallet.”
DMM Bitcoin Implements Restrictions Following Crypto Hack
The business stated in the letter, “We are still investigating the details of the damage,” “We have already taken measures to prevent the unauthorized leak, but we have also implemented restrictions on the use of some services to ensure additional safety.”
Among these limitations are the inability to screen new accounts and the freezing of cryptocurrency withdrawals. Leverage traders can no longer open positions, and spot traders are also limited to selling only and not purchasing any cryptocurrency.
“Please rest assured that all of your Bitcoin (BTC) deposits will be fully guaranteed,” the exchange added. “We will procure the equivalent amount of BTC that was leaked with support from our companies.”
According to CoinPost, DMMBitcoin, a cryptocurrency exchange under Japanese securities company DMM, was suspected of being hacked, and $300 million worth of Bitcoin may have been stolen. DMMBitcoin said it would purchase Bitcoin equivalent to the outflow amount and guarantee the…
— Wu Blockchain (@WuBlockchain) May 31, 2024
When it comes to fiat value, the loss ranks among the biggest worldwide exchange hacks. For comparison, the 2014 great Mt. Gox hack had a $450 million value. In 2018, CoinCheck suffered the biggest hack in Japan, losing 58 billion yen ($532 million).
Many customers have never received their entire money back or have only received a portion of their coins back as a result of previous corporate withdrawal freezes on customers who lost their cryptocurrency.
However, 18 months after freezing withdrawals, Gemini Earn was able to successfully reimburse their customers in kind for all of their cryptocurrency.