Japanese Crypto Exchange DMM Bitcoin Loses $300M+ in Hack

Japanese cryptocurrency exchange DMM Bitcoin has announced a significant security breach resulting in the theft of over $300 million worth of Bitcoin. This alarming incident was confirmed on Friday, May 31, 2024.

According to Arkham Intel, the stolen amount is estimated at 4,502.9 BTC, which is equivalent to approximately 48.2 billion yen (around $308 million).

The breach was detected at approximately 1:26 p.m. on May 31. DMM Bitcoin, a subsidiary of DMM Group, reported an unauthorized outflow of Bitcoin from its wallet.

The exchange reportedly implemented measures to prevent further unauthorized outflows and secure their remaining assets.

Suspended Services

In response to the breach, DMM Bitcoin has suspended several services to manage the situation and protect its users. The services suspended include:

• Screening for new account openings

• Cryptocurrency withdrawal processes

• Stop buying orders for spot trading (only selling orders are accepted)

• Suspending new open orders for leveraged trading (only settlement orders are accepted)

Additionally, the exchange has restricted all spot buys on the platform and warned that Japanese yen withdrawals might take longer than usual due to the increased security measures and ongoing investigations.

Assurances to Customers

DMM Bitcoin has taken steps to reassure its customers in the wake of this breach. The exchange stated:

"Please be assured that we will procure the equivalent amount of BTC equivalent to the outflow with the support of the group companies and guarantee the full amount."

The exchange appeared to commit to reimbursing customers if necessary to cover any potential losses.

Rising Trend in Crypto Hacks

The incident at DMM Bitcoin is part of a broader trend of increasing hacks and fraud in the cryptocurrency sector.

In January alone, nearly $127 million was lost due to hacks and fraud, a six-fold increase compared to January 2023. Most of these incidents have targeted DeFi institutions, with centralized finance (CeFi) institutions like cryptocurrency exchanges being less frequently affected until now.

In Q1 of 2024, approximately $336.3 million was lost as a result of hacking and fraud incidents, according to an ImmuneFi report.