$320M Raised by Japanese Crypto Exchange DMM Bitcoin to Compensate Users Post-Hack

The DMM Bitcoin project intends to raise equal cash to compensate customers for a loss of $320 million caused by a major attack.

DMM Bitcoin, a cryptocurrency exchange in Japan that was recently hacked and stolen Bitcoin worth $320 million, intends to fund 50 billion yen, equivalent to $320 million, to recompense users for the damages they have sustained.

DMM Bitcoin indicated in a statement released on June 5 that it would restore stolen customer monies by acquiring an equivalent amount of Bitcoin (BTC) from its group firm, DMM.com.

Continually being looked into

The statement assured users of DMM Bitcoin that the company will "take care" to minimize the impact of the planned acquisitions on the market, as per Cointelegraph.

Additional information provided by the corporation included the fact that the investigation into the "unauthorized outflow" of 4,503 BTC that occurred on May 31 is still ongoing.

DMM Bitcoin issued a statement stating that it would "continue to investigate the cause of the unauthorized outflow." The company expressed its "deepest" apologies for the issue and its impact on its clients.

Additionally, the company has mentioned that it will "promptly inform" the general public of any new information as soon as it is made available.

Obtaining cash for the recovery

On June 3, DMM Bitcoin took out a five billion yen loan, equivalent to thirty-two million dollars, to finance the compensation required to reimburse clients.

On June 7, a fresh capital increase of 48 billion yen, equivalent to $308 million, will take place. On June 10, an additional 2 billion yen, equivalent to $12.8 million, will be raised through subordinated debt financing.

DMM.com is the source of this financial assistance and recovery fund accumulation, which will ensure that the required money is available to "guarantee customers' Bitcoin holdings."

Cleaned up into ‘bits’

The DMM Bitcoin incident is one of the top 10 largest cryptocurrency exchange hacks of all time and the eighth-largest hack in the cryptocurrency industry's history.

In the first instance, the Ronin Network attack in March 2022 took advantage of the validator nodes associated with the network, stealing $620 million.

The result was that Ronin decided to drastically improve its security methods, implement one-million-dollar bug bounties, and increase the number of validator nodes to guarantee that this "never happens again."

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