Hacking crisis in the Japanese crypto exchange: Users be alert!

Japanese crypto exchange DMM #Bitcoin , which was recently hacked for $320 million worth of Bitcoin (BTC), plans to raise 50 billion yen ($320 million) to compensate users for their losses.

In a statement regarding the investigation, DMM Bitcoin assured users of minimizing market impact with planned purchases.

The company also announced that an investigation is ongoing following an “unauthorized exit” equivalent to 4,503 BTC on May 31. DMM Bitcoin apologized for the situation and its impact on its customers and stated that it would continue to investigate the cause of the unauthorized exit. The company also stated that it will immediately inform the public as new details emerge.

Securing funds

DMM Bitcoin borrowed five billion yen ($32 million) on June 3 as part of efforts to finance compensation needed to repay customers. An additional capital increase of 48 billion yen ($308 million) is planned for June 7, and an additional capital increase of 2 billion yen ($12.8 million) is planned for June 10 through subordinated debt financing.

This financial support and recovery fund accumulation comes from DMMcom and will provide the necessary funds to guarantee customers' BTC. The DMM Bitcoin incident was recorded as the eighth largest cryptocurrency hacking attack in history. While DMM Bitcoin is working on the incident, the anxious wait among exchange users continues. Moreover, in this period when the crypto market is positive, DMM Bitcoin's hack has become a news item in Japan.
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