Japan-Based DMM Bitcoin Wants to Raise Money to Acquire Bitcoin Following a Significant Hack

Digital money exchange After suffering a massive attack and losing 4,502.9 Bitcoin on Friday, a Japanese Bitcoin exchange is preparing to solicit donations in order to purchase Bitcoin as compensation for its clients.

The exchange is reportedly considering a 50 billion yen (about $321 million) fundraising effort, according to Bloomberg. “Taking care” of the biggest cryptocurrency in the world would be the funds’ responsibility in the event of the breach, it said.

In addition, last week there was a planned “unauthorized outflow,” and the DMM Bitcoin announced on Wednesday that an inquiry into it is continuing.

According to Chainalysis statistics, the incident was the seventh-biggest crypto heist ever. It managed to accumulate client cash worth $305 million. “Unauthorized leak of Bitcoin (BTC) from our wallet.” was the public statement the firm used to describe the incident.

The specifics of the damage are currently under investigation. There would be no risk to any of your Bitcoin deposits, the exchange informed customers at the time.

“We will recover the same number of Bitcoins that were exposed with the help of our partners,” DMM Bitcoin said after the breach.

According to Bloomberg, the Japanese Financial Services Agency has requested that DMM Bitcoin disclose its rules on client compensation in light of the recent theft. The Japanese government will take measures to safeguard the country’s cryptocurrency exchanges against instances like this, according to Finance Minister Shunichi Suzuki.

A number of heists using cryptocurrency exchanges, comparable to DMM Bitcoin, have occurred in Japan. Attackers broke into the computers of Tokyo-based cryptocurrency exchange Liquid in August 2021 and stole cryptocurrencies valued at least $94 million.

Apparently, hackers stole cryptocurrency from Liquid’s “warm” wallets. As a result, the exchange shifted its remaining assets to cold wallets, which are essentially offline accounts.

Coincheck was the victim of yet another high-profile breach on a Japanese cryptocurrency exchange in 2018, which exposed 523 million NEM coins.

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