DMM Bitcoin Suffers $305 Million BTC Loss in Cyber Attack: Analyzing the Impact on BTC Prices
DMM Bitcoin, a cryptocurrency exchange based in Japan, has reported a significant loss of $305 million following a recent hacking incident. The breach resulted in the theft of 4,502.9 Bitcoin (BTC) from the exchange. As a consequence, the price of BTC has experienced a sharp decline and is currently approaching its weekly low of $67K.
DMM Bitcoin, a Japanese cryptocurrency exchange, revealed on Friday that it had been targeted in a security breach, resulting in the theft of over $300 million worth of bitcoin. In a blog post, the exchange disclosed that a total of 4,502.9 BTC, valued at $305.1 million, had been stolen. Despite this, DMM Bitcoin has assured its customers that all bitcoin deposits will be fully covered. The exchange plans to replace the stolen bitcoin with the assistance of affiliated companies, although no specific timeline has been provided.
The theft came to light after a transaction involving 4,502 BTC was flagged by the Whale Alert account on the social media platform X (previously known as Twitter). Following the incident, DMM Bitcoin has temporarily suspended all crypto withdrawals, spot market purchases, and new leveraged trading positions. The exchange is also reviewing new account applications. The blog post mentioned that withdrawals in Japanese yen may experience delays. DMM Bitcoin did not provide a timeline for when normal services will resume but promised to provide a future update with more details.
The exchange stated, “Please rest assured that we will obtain an equivalent amount of BTC to replace the stolen funds with the support of our affiliated companies and ensure that the full amount is guaranteed.”
As news of the theft spread, the price of BTC sharply declined, losing its buying momentum around $69,000. As a result of increased long-liquidations, Bitcoin dropped to as low as $67K within an hour.
According to a report by the Japanese news service Nikkei, DMM Bitcoin had approximately 370,000 customer accounts by the end of 2023, based on data from an annual business report. If confirmed, the stolen sum would rank among the largest cryptocurrency exchange heists ever recorded.
In 2018, Coincheck experienced a significant theft amounting to 58 billion yen, equivalent to approximately $533 million in cryptocurrency. Later that year, the exchange was acquired by the online brokerage firm Monax.
Japan has also witnessed one of the most infamous Bitcoin exchange failures with Mt Gox, which lost over $400 million in 2014 values. The collapse of Mt Gox initiated a lengthy process that is now nearing its conclusion, with steps being taken to finally distribute funds to creditors.
In related news, the Japanese trustee of Mt. Gox, Nobuaki Kobayashi, has begun transferring tokens from the exchange’s wallets. A note from Kobayashi dated May 28 indicated plans to distribute Bitcoin and Bitcoin Cash to creditors.
Tags: Bitcoin, Cryptocurrency