While DMM investigates the hack, cryptocurrency withdrawals have been frozen, as well as opening new accounts and trading on the platform.
The Japanese cryptocurrency brokerage DMM Bitcoin suffered a hacker attack and lost US$305 million (about R$1.5 billion) in bitcoin. In an official communication to customers this Friday (31), the company revealed that a total of 4,502 bitcoins were illegally transferred from its platform.
In the statement, the brokerage said it has taken steps to prevent further thefts and that it is investigating the details of the damage caused by the attack. The company guaranteed that it will reimburse affected customers and promised that no user will suffer losses.
While DMM investigates the hack, cryptocurrency withdrawals have been frozen, as well as opening new accounts and trading on the platform.
“Rest assured that we will acquire the equivalent amount of bitcoin with the support of group companies and guarantee full value to users,” DMM Bitcoin said in its statement.
4,502 bitcoins stolen from broker
The DMM Bitcoin hack is the second largest in the region, behind only the attack on Coincheck in 2018, which resulted in the loss of US$523 million.
“At approximately 1:26 pm on Friday, May 31, 2024, we detected an unauthorized leak of bitcoin from our wallet,” said DMM Bitcoin, a subsidiary of DMM Group, according to an English translation of the statement made in Japanese and published on the company website.
DMM Bitcoin, part of one of Japan's largest entertainment and online services conglomerates, is now working with authorities and cybersecurity experts to try to trace the funds and prevent further theft.
After freezing withdrawals and access to its services, the company apologized to users and promised that it will contact users to provide more information on how they should proceed to recover their funds.
The exchange, however, did not say when services would resume, but will make an announcement in the coming days.
According to blockchain data, the 4,500 stolen bitcoins were transferred to just one wallet and then distributed across 9 different wallets, each receiving 500 bitcoins.
Hackers, therefore, may be preparing to launder the funds in mixers to prevent tracking by authorities.
According to local media, DMM Bitcoin is one of the largest exchanges in Japan and allows trading in at least 40 digital assets. The company has around 370,000 customers and several of them expressed concern on social media.
