DMM Bitcoin will raise $350 million to compensate hacking victims.
Japanese cryptocurrency exchange DMM Bitcoin has revealed plans to compensate users for losses resulting from the theft of 4,502.9 BTC at the end of May.
According to the statement, the platform intends to return assets to clients by purchasing an equivalent amount of bitcoins with the financial support of DMM Group companies.
On June 3, the exchange had already raised borrowed funds for this purpose in the amount of 5 billion yen (~$32 million).
A further capital increase of 48 billion yen (~$307.5 million) is scheduled for June 7.
DMM Bitcoin then expects to receive a subordinated loan of 2 billion yen (~$12.8 million).
The total amount of funds raised in this case will reach approximately $352 million.
After this, the exchange will “proceed to purchase an equivalent amount of bitcoins, taking care not to influence the market.”
At the time of writing, the price of the first cryptocurrency is around $70,700 (CoinGecko). According to current quotes, the platform needs a little more than $320 million to acquire lost assets.
The DMM Bitcoin team “deeply” apologized for the situation to affected customers and said that an investigation into the incident is ongoing. She promised to promptly inform users about the situation as details emerge.
According to Elliptic, the DMM Bitcoin exploit was “the eighth largest cryptocurrency theft of all time and the largest since the $477 million FTX hack in November 2022.”
In 2018, hackers withdrew more than $500 million in NEM (XEM) cryptocurrency from another Japanese exchange, Coincheck. At that time it was one of the largest crypto platforms in the country.
According to CoinGecko, over the past 24 hours the normalized trading volume on Coincheck was $89 million (ranked 66th). For comparison, the leading Binance reached almost $9.9 billion.
Let us recall that in April 2024, crypto projects collectively lost about $25.7 million from hacks and fraud. This was a record low amount for the month since 2021, CertiK noted.
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