DMM Bitcoin hack loses $305M: what happens to BTC prices?

Category: Blockchain Crypto

A recent hack caused DMM Bitcoin, a cryptocurrency exchange with headquarters in Japan, to announce a huge loss of $305 million. The exchange lost 4,502.9 Bitcoin (BTC) as a result of the security breach.

The outcome was a sharp drop in the price of Bitcoin, which is currently approaching the weekly low of $67K.

DMM Bitcoin guarantee customer bitcoin deposits

On Friday, DMM Bitcoin, a cryptocurrency exchange based in Japan, declared that it had suffered a security breach that led to the theft of more than $300 million in Bitcoin.

The exchange disclosed in a blog post that a grand total of $305.1 million, or 4,502.9 BTC, had been pilfered. DMM Bitcoin guaranteed that every customer’s bitcoin deposit would be fully reimbursed in spite of the theft.

They did not say when they would replace the stolen bitcoin, but they intend to do so with the assistance of connected businesses.

The theft was discovered when the Whale Alert account on the social media site X, formerly known as Twitter, reported a transaction totaling 4,502 Bitcoin. DMM Bitcoin stopped accepting new leveraged trading positions, spot market purchases, and cryptocurrency withdrawals after the incident.

Additionally, they are examining fresh account applications.

There could be delays with withdrawals in Japanese yen, according to the blog post. Although DMM Bitcoin promised a future update with more details, it did not provide a timeline for when regular services would resume.

According to the exchange that with the help of the group companies,they will procure the equivalent amount of BTC equivalent to the outflow and guarantee the full amount.

Please be assured that we will procure the equivalent amount of BTC equivalent to the outflow with the support of the group companies and guarantee the full amount.

DMM Bitcoin

The buying momentum for bitcoin is lost

The price of Bitcoin fell precipitously after the news because there was no longer a buyer around $69,000. In just one hour, Bitcoin fell to a low of $67K as long-liquidations increased.

Based on information from an annual business report, DMM Bitcoin had about 370,000 customer accounts by the end of 2023, according to a report by the Japanese news service Nikkei.

If confirmed, the amount taken would be one of the biggest cryptocurrency exchange thefts in history.

Furthermore, a large-scale theft of 58 billion yen, or roughly $533 million in cryptocurrency, occurred at Coincheck in 2018. The online brokerage company Monax acquired the exchange later that year.

One of the most well-known Bitcoin exchange collapses occurred in Japan as well, involving Mt Gox, which lost more than $400 million in 2014. A protracted process that began with the collapse of Mt. Gox is drawing to an end as actions are being taken to finally disburse funds to creditors.

Nobuaki Kobayashi, a Japanese trustee of Mt. Gox, has started moving tokens out of the exchange’s wallets. Plans were revealed in a May 28 note from Kobayashi regarding the distribution of Bitcoin and Bitcoin Cash to creditors.

Stay informed and protect your assets

In today’s dynamic cryptocurrency landscape, it is vital that investors remain knowledgeable about potential threats and implement robust security practices to safeguard their virtual currency holdings.

To ensure the protection of their cryptocurrencies, users must adopt stringent security practices such as creating complex and unique passwords, implementing multi-factor authentication, and regularly updating software to shield against potential threats.

Furthemore, in an effort to minimize potential losses and hold accountable those responsible for the unauthorized transfer of Bitcoin from DMM Exchange, the cryptocurrency community is pooling resources and expertise to track down the stolen digital assets.

The recent hack on DMM Bitcoin highlights the indispensable role of stringent security protocols within the crypto industry, acting as a grim reminder that not every stolen digital asset may be retrieved following a cyberattack.

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