Breaking: DMM Bitcoin Loses 4,502.9 BTC in $305 Million Crypto Hack

Freelance Journalist

Andrew Throuvalas

Freelance Journalist

Andrew Throuvalas

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Andrew is a journalist and content writer with a passion for Bitcoin. His work has been featured with Cryptonews, Decrypt, CryptoPotato, and Bitcoin Magazine, among others.

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May 31, 2024 11:05 EDT

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Japanese Bitcoin exchange DMM lost 4,502.9 Bitcoin to a hack on Friday, comprising 48.2 billion yen ($305 million USD) worth of 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

“We are still investigating the details of the damage,” the company wrote. “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.”

Some of those restrictions include preventing new account screenings and freezing crypto withdrawals. Spot traders are also restricted to only selling and not buying any crypto, while leverage traders can no longer open positions.

“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

The loss represents one of the largest global exchange hacks in terms of fiat value. For context, the great Mt. Gox hack in 2014 was worth $450 million. The largest Japan-based hack is that of CoinCheck, which lost 58 billion yen ($532 million) back in 2018.

Previous corporate withdrawal freezes on customers after losing their crypto have led to many never receiving their full money back or only getting a fraction of their coins paid back in return.

More recently, however, Gemini Earn successfully paid back their customers in kind for all of their crypto 18 months after freezing withdrawals.