DMM Bitcoin to compensate customers affected by the hack

Japanese cryptocurrency exchange DMM Bitcoin is staying true to its promise. The exchange, which was hacked last week, is raising funds to compensate affected customers.

According to a statement on June 5, DMM Bitcoin said it would raise 50 billion yen, approximately $320 million, to buy Bitcoins.

DMM Bitcoin customers to be compensated

A move of such a magnitude raises concerns about how it could affect the Bitcoin market. However, the Japanese exchange has assured it would  “take care” to minimize impact.

The platform will be strategically planning its purchases as a result.

As of now, the exchange has already loaned 5 billion yen and will raise the remainder in the coming weeks. The funds are being raised via DMM Bitcoin’s parent firm DMM.com.

Founded in the 1990s, DMM.com now comprises over 20 firms under its umbrella and boasts group revenue of about 348 billion yen as of February 2024.

Japan’s Financial Services Agency, the nation’s securities watchdog, has asked for a detailed report on the reason behind the hack. The report would also include details of the compensation plan.

Meanwhile, the nation’s Finance Minister Shunichi Suzuki has asserted that authorities will take measures to prevent such incidents from transpiring in the future.

Investigations into the hack are currently underway, as reported by the exchange.

The plans to compensate customers were initially revealed right after the attack on May 29.

At the time, the exchange wrote:

“Please be assured that all your Bitcoin (BTC) deposits will be completely covered. We will procure the equivalent amount of BTC that was compromised with the support of our group companies.”

Approximately 4,502.9 BTC disappeared from the exchange’s wallet, allegedly due to a hack of its private key. DMM Bitcoin has yet to publicize the exact details.

Crypto community unites

The cryptocurrency community has been vigilant since the news of the attack broke. On-chain tracker Whale alert had flagged a transfer of 4,502 Bitcoin, coinciding with the timing of the attack.

The wallet’s owner was listed as “Unkown,” but the community has been speculating that it was the hacker.

Security firm Blocksec has estimated that the hacker has distributed the stolen funds across 10 wallets in batches of 500 BTC. Meanwhile, Beosin, another security specialist, has vowed to continue monitoring the flagged wallet address.

Blockchain analysis firm Arkham Intelligence has even offered a 1,000 ARKM token bounty to anyone offering more information regarding the incident.
The incident is being hailed as “the 7th largest crypto hack ever,” according to security firm Chainalysis.

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