Another Japanese cryptocurrency exchange has been hacked! DMM Bitcoin has confirmed this afternoon that 4,502.9 BTC has been stolen, with a value of 48 billion yen. This is the third largest loss in history.
(Previous Summary: “Air Raid Alert” – Screenshot of Mt. Gox preparing to repay 140,000 BTC, will Bitcoin crash?)
(Background Supplement: “The Worst Exchange” – Mt. Gox is repaying 9.5 billion USD worth of Bitcoin, K33 Research: May cause Bitcoin to be dumped)
Title: Third Largest Loss for Japanese Exchange
Mt. Gox incident, 850,000 BTC stolen
Coincheck incident, 500 million NEM stolen
Japanese licensed cryptocurrency exchange, DMM Bitcoin, has confirmed this afternoon that a significant amount of Bitcoin has been illegally transferred out of their official wallet. According to official confirmation, a total of 4,502.9 BTC has been illicitly transferred from the exchange, resulting in a loss of 48 billion yen ($305 million).
DMM Bitcoin is a cryptocurrency exchange owned by the Japanese entertainment giant, DMM Group, and is one of the approved exchanges by the Japanese government. It has previously been endorsed by mixed-race model Rola and actress Rika Nakagawa.
The following is the official article:
Full Text:
On May 31, 2024 (Friday) at around 13:26, we detected the unauthorized outflow of Bitcoin (BTC) from our company’s wallet.
Although we are still investigating the specific extent of the loss, the confirmed situation is as follows. Countermeasures against the unauthorized outflow have been implemented, but in order to further ensure security, we have imposed restrictions on certain services.
We deeply apologize for the inconvenience caused to our customers.
Regarding the outflow of encrypted assets, it has been found that the amount of Bitcoin (BTC) illicitly transferred from our wallet is 4,502.9 BTC (equivalent to approximately 48.2 billion yen).
Regarding the Bitcoin (BTC) deposited by customers, we will provide full guarantees by allocating the corresponding amount of BTC through support from our group companies. Please be reassured.
Regarding the restrictions on service usage, we have limited the following services:
Examination of new account openings
Withdrawal processing of encrypted assets
Buy orders for spot trading (only sell orders are accepted)
Opening new positions for leveraged trading (only settlement orders are accepted)
※ Spot trading and leveraged trading limit orders that have already been placed will not be canceled. ※ Yen withdrawals may take longer than usual.
The time for reopening services will be announced separately.
We deeply apologize for the significant inconvenience and concerns caused to our customers by this incident.
Users who have been in the cryptocurrency circle for a while may still remember the incident when Mt. Gox, the exchange, was hacked. This hacking incident of DMM Bitcoin will become the third largest victim case in history.
Mt. Gox was once the largest Bitcoin exchange in the world, founded in 2010 and headquartered in Tokyo, Japan.
In 2014, Mt. Gox suffered a major hacker attack, resulting in the theft of approximately 850,000 Bitcoins, valued at around $450 million at the time. Mt. Gox subsequently declared bankruptcy, leading to significant losses of user funds, and only started repayment this year.
Coincheck is also a Japanese cryptocurrency exchange, established in 2012. In January 2018, Coincheck announced that its platform was hacked, resulting in the theft of approximately 500 million NEM, valued at around $534 million at the time.
Coincheck promised to compensate users for their losses and was eventually acquired by Monex Group for reconstruction. Subsequently, the Japanese Financial Services Agency (FSA) strengthened its regulation of cryptocurrency exchanges, including stricter security measures and operational standards.
Related Reports:
After waiting for ten years, Mt. Gox exchange finally repays! Will the repayment of 140,000 BTC cause a Bitcoin crash?
Bitcoin faces massive sell-off from Mt. Gox! Announces commencement of claims: 200,000 BTC may be unlocked in the next two months.
140,000 BTC being returned? Mt. Gox creditors receive yen compensation, repayment deadline extended to October 2024.