$320 Million Hack Leads to Liquidation
Japanese crypto exchange DMM Bitcoin has announced its closure following a cyberattack that resulted in a loss of $320 million. Despite months of attempts to recover customer funds, the company ultimately decided to transfer its remaining accounts to another operator, SBI VC Trade.
Lazarus Group Suspected as the Culprit
Renowned crypto analyst ZachXBT has pointed to the Lazarus Group, a North Korean hacker collective, as the likely perpetrator of the attack. His investigation traced approximately $35 million of the stolen funds to a Cambodian money-laundering network and found strong evidence of the group’s involvement. However, DMM Bitcoin did not gain any tangible benefits from these findings.
DMM Bitcoin’s Official Statement
According to The Nikkei, DMM Bitcoin stated its decision to close the exchange was made with the protection of its customers as the top priority. In a previous statement, the company explained:
"Protecting our customers is our number one priority. Therefore, we have decided to transfer all accounts and assets to another company. We sincerely apologize for the inconvenience caused. We plan to cease operations once this transfer is complete."
The exchange attempted a fundraising effort in June to recover customer losses. Despite these efforts, the losses could not be fully compensated, leading to the decision to transfer its assets to SBI VC Trade and wind down operations.
Call for Stricter Security Measures
The case of DMM Bitcoin underscores the need for robust security protocols for cryptocurrency exchanges. Shortly before DMM Bitcoin’s closure, Japanese financial regulators warned other platforms to implement tighter oversight and enhanced security measures.
Crypto Hacks Declining, but Risks Remain
While the overall number of cryptocurrency hacks is decreasing, their sophistication continues to grow. The DMM Bitcoin incident serves as a reminder for users to rely exclusively on trusted and secure platforms.

#CryptoHack , #Cryptoscam , #HackerAlert , #CryptoNewss , #BTC☀

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

In an unexpected development following a recent cyberattack, BTCTurk has announced the delisting of Luna Classic (LUNC) from its platform. This decision comes amid significant market activity and security concerns. Here's what you need to know:
This decision does not affect other nine cryptocurrencies listed on BTCTurk affected by the attack. Transactions will continue as usual, adhering to the same security principles, including those impacted by the recent cyberattack.
This announcement marks a significant turn of events as BTCTurk navigates the aftermath of the security breach. Users are encouraged to stay informed through official BTCTurk channels for any further updates.

#btcturk #cryptohack #lunc

Singapore-based cryptocurrency exchange Phemex has suffered a major security breach, with reports suggesting that $29 million in digital assets have been stolen. The incident highlights ongoing security vulnerabilities in the crypto exchange space and has sparked industry-wide concerns.

Details of the Hack
1. Suspicious Transactions Detected
Meir Dolev, co-founder and CTO of Cyvers, flagged suspicious activity on January 23rd involving one of Phemex’s hot wallets.
125 unauthorized transactions were detected across 11 blockchain networks, including Binance Smart Chain ($BNB ), Ethereum ($ETH ), Optimism (OP), Polygon ($POL ), Base, and Arbitrum (ARB).
2. Stolen Funds Movement
Over $29 million in assets, including stablecoins and tokens, have reportedly been drained.
The hacker’s address (0x5B344) distributed the stolen funds to two other addresses:
0x17BCC: Received 744,696 USDT.
0x6C42F: Received 1,767,957 USDC.
The stolen stablecoins were swiftly converted into Ethereum to evade freezing by blockchain protocols.
3. Exchange Response
Phemex CEO Federico Variola confirmed the breach in one of the exchange’s hot wallets. However, the cold wallets remain secure.
Withdrawals have been temporarily suspended while the team investigates and strengthens wallet security. Trading operations remain unaffected.

Phemex’s Official Statement
The exchange issued an apology to its users, stating:
> “To ensure security, withdrawals have been temporarily suspended while we conduct an emergency inspection and strengthen wallet services. We sincerely apologize for the inconvenience. Withdrawals will be restored soon.”
Phemex has assured its users that a compensation plan is underway for those affected.

What Happens Next?
1. Security Upgrades
Phemex is expected to enhance its wallet infrastructure and implement stricter security measures to prevent future breaches.
2. Impact on User Confidence
While the exchange has maintained business continuity, the breach may dent user confidence, especially among those affected by the stolen funds.
3. Industry Implications
This incident highlights the ongoing challenges of securing hot wallets in crypto exchanges and underscores the importance of robust cybersecurity measures in protecting digital assets.

Takeaway
The Phemex breach is a stark reminder of the vulnerabilities associated with hot wallets in crypto exchanges. While users await compensation, the exchange's swift action and transparency will play a critical role in rebuilding trust.
Stay updated as Phemex continues its investigation and resolves this security issue.
#PhemexHack #CryptoNews #BlockchainSecurity #CryptoHack

Massive Data Breach Impacts Thousands of Clients
Byte Federal, one of the largest bitcoin ATM operators in the US, disclosed a security breach that may have affected up to 58,000 customers. The company, which operates 1,356 ATMs, revealed the incident more than a month after it occurred.
Details of the Security Breach
According to a report filed with the Maine Attorney General, the attack happened on September 30 but was discovered on November 18. An unknown attacker exploited a third-party software vulnerability to gain unauthorized access to client data.
The potentially exposed data includes personal identifiers such as names, dates of birth, addresses, phone numbers, Social Security numbers, and even user photographs. Byte Federal stated, however, that there is no evidence of misuse of this data.

Immediate Response by Byte Federal
Upon discovering the breach, the company promptly shut down its platform and implemented preventive security measures to protect its clients. Byte Federal urged all users to reset their passwords and updated its internal security protocols, including password management systems, tokens, and access keys.
Ongoing Forensic Investigation
With the support of an external cybersecurity team, Byte Federal has launched a comprehensive investigation into the cause and scope of the incident. The company also noted that legal investigations are underway, and customers may be required to verify their identity upon login.
Byte Federal's Market Presence
Byte Federal operates 4.3% of all bitcoin ATMs in the US, making it a significant player in the industry. However, the market leader is Bitcoin Depot, which manages over 8,100 cryptocurrency ATMs.

Rising Security Challenges in Bitcoin ATMs
Bitcoin ATMs are a popular method for exchanging fiat currencies for cryptocurrencies, but their increasing popularity brings new security risks. According to the Federal Trade Commission, fraud involving bitcoin ATMs has surged by over 1,000% since 2020. This incident underscores the importance of strengthening security measures in cryptocurrency services.

#Bitcoin❗ , #cryptofraud , #cybersecurity , #CryptoHack , #BTC☀

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“