Hacked Japanese Crypto Exchange DMM Bitcoin Plans Massive BTC Purchase
Highlights
- DMM Bitcoin to Buy $320 million worth of Bitcoins to compensate users suffering from last week's hack.
- The hacked exchange will conduct a planned purchase without affecting the Bitcoin market.
- Japan's FSA is looking into the hack asking a detailed report from DMM Bitcoin.
In the latest development, DMM Bitcoin, the hacked Japanese crypto exchange is planning to raise a staggering 50 billion yen ($320 million) to buy Bitcoins. This move seeks to compensate all the customers who were the victims of the DMM Bitcoin hacking incident last week.
DMM Bitcoin Plans Out BTC Purchase
In a statement earlier today, June 5, DMM Bitcoin stated that it would take enough measures to avoid any Bitcoin market effect while assuring that it will be a planned purchase. Furthermore, the exchange also stated that they would be conducting a probe into the “unauthorized outflow” that took place during the last week.
As per the details, the total outflow from the exchanges was roughly about 4,503 Bitcoin, worth $320 million as per the current Bitcoin price of $70,879.
Chainalysis, a platform monitoring the movement of digital assets across blockchains, identified the recent breach as the seventh-largest crypto hack to date.
Japan’s Financial Services Agency has mandated DMM Bitcoin to provide a detailed account of the breach’s origins and outline compensation protocols for affected customers.
Additionally, Finance Minister Shunichi Suzuki has affirmed the government’s commitment to implementing measures aimed at averting future security breaches within cryptocurrency exchanges.
Crypto Hackers Reign Again
As the cryptocurrency industry continues to gain momentum and popularity, the number of hacking incidents hasn’t stopped. Despite its reputation as one of the most crypto-friendly nations, Japan has faced a series of notable hacking incidents.
The most prominent occurred in 2014 when the Mt. Gox exchange filed for bankruptcy following a theft, resulting in a loss exceeding $470 million. Subsequently, in 2018, another Japanese cryptocurrency exchange, Coincheck, experienced a comparable breach, losing over $500 million.
The Mt. Gox Rehabilitation Trustee has been working on its repayment plans and moved a staggering $10 billion in BTC and BCH during the last week. As per the previous courses, Mt. Gox will finish its redistribution by around September 2024, in a way that it doesn’t affect the Bitcoin price going ahead.
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