DMM Bitcoin, a Japanese cryptocurrency exchange, recently suffered a hack resulting in the loss of $320 million worth of Bitcoin.
To address this breach, the company plans to raise 50 billion yen ($320 million) to compensate affected users.
In a statement issued on June 5, DMM Bitcoin detailed its plan to recover the stolen funds by acquiring an equivalent amount of Bitcoin from its parent company, DMM.com.
The exchange reassured users that it would “take care” to minimize the market impact of these purchases.
The company is conducting an ongoing investigation into the “unauthorized outflow” of 4,503 BTC that occurred on May 31.
DMM Bitcoin “deeply” apologized for the incident and its repercussions on its customers, pledging to “continue to investigate the cause of the unauthorized outflow.”
They also committed to keeping the public informed of any new developments as they arise.
To fund the compensation for its customers, DMM Bitcoin secured a loan of five billion yen ($32 million) on June 3.
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Further financial measures include a planned capital increase of 48 billion yen ($308 million) scheduled for June 7, and an additional two billion yen ($12.8 million) through subordinated debt financing on June 10.
This financial support from DMM.com is intended to ensure that the exchange has the necessary funds to “guarantee customers’ Bitcoin holdings.”
The DMM Bitcoin hack is ranked as the eighth-largest cryptocurrency hack in history, making it one of the top 10 biggest crypto exchange hacks of all time.
The largest hack to date occurred in March 2022, when the Ronin Network’s validator nodes were exploited, resulting in the theft of $620 million.
In response, Ronin significantly enhanced their security measures, introduced $1 million bug bounties, and doubled their validator nodes to prevent future incidents.
DMM Bitcoin’s proactive steps in securing funds and ongoing investigation aim to restore user trust and ensure the stability of their platform amidst the aftermath of this significant security breach.
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