In a major security breach, Japanese Bitcoin exchange DMM has lost 4,502.9 Bitcoin, equivalent to $305 million USD, due to a hack. The company has confirmed the incident and referred to it as an “unauthorized leak of Bitcoin (BTC) from our wallet” in a public statement. DMM Bitcoin has taken immediate steps to investigate the matter and prevent further unauthorized access. As part of their security measures, they have implemented restrictions on various services, including new account screenings and crypto withdrawals. Spot traders can only sell crypto and are prohibited from buying, while leverage traders cannot open new positions. However, the exchange has assured its customers that all Bitcoin deposits will be fully guaranteed. DMM Bitcoin plans to procure the equivalent amount of leaked BTC with the support of its partner companies. This incident marks one of the largest global exchange hacks in terms of fiat value, surpassing even the infamous Mt. Gox hack in 2014, which was valued at $450 million. It is also the second-largest hack in Japan, following CoinCheck’s loss of 58 billion yen ($532 million) in 2018. Previous incidents have shown that customers may not receive their full funds or only receive a fraction of their coins after corporate withdrawal freezes. However, Gemini Earn has recently set a positive example by successfully reimbursing its customers in full for their frozen crypto after 18 months.
