In the struggling cryptocurrency market, a Japanese cryptocurrency exchange, DMM, gathered massive attention from the crypto community today after experiencing a major security breach. On May 30, 2024, a security firm named CertiK Alert made a post on X (Previously Twitter) that the Japanese centralized cryptocurrency exchange DMM suffered a significant security breach, resulting in the loss of 4,502 Bitcoins worth over $305 million.
#CertiKInsight Japanese Exchange @DMM_Bitcoin have announced an unauthorized transfer of 4502.9 BTC (~$304.7m) from their walletSee their announcement here https://t.co/vOToizzrJ9Txn:https://t.co/Ba0KwklzGu
— CertiK Alert (@CertiKAlert) May 31, 2024
Japanese Crypto exchange lost $305 million worth Bitcoin
The exchange confirmed the hack on its website and assured users that all deposits would be fully covered. Additionally, in response to the breach, DMM has temporarily halted several services, including withdrawals, new account registrations, new spot buy orders, and new leveraged orders. However, existing limit orders will remain active and will not be canceled.
Additionally, this incident is also confirmed by a blockchain transaction tracker named Whale Alert made a post on X, highlighting the massive transfer of 4,502 Bitcoin from an unknown wallet to a new, unidentified wallet. At the time, Whale Alert identified the wallet’s owner as “unknown.”
Will exploiters return Bitcoin?
DMM later confirmed that it had lost exactly 4,502 Bitcoin in the attack, indicating that this transaction was linked to the breach. The exchange has implemented measures to prevent further unauthorized access and has promised to replace the lost Bitcoin. DMM plans to secure the necessary funds with assistance from its group companies to ensure that all users are compensated.
Prior to this incident, the overall loss that the crypto market experienced in May 2024 was around $42.6 million, as reported by Todayq News. However, after this incident, the total loss for the month surged to a record high of $347.6 million. All eyes are now on the exploiters to see if they will make any demands, as has been the case with other such incidents.