DMM Outlining Funding Plan to Recover from $300 Million Hack Losses

Lily Polanco Follow Jun 04, 2024 · 1 min read
DMM Outlining Funding Plan to Recover from $300 Million Hack Losses
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Japanese crypto exchange DMM Bitcoin has taken proactive steps to address the aftermath of a recent hack that resulted in over $300 million in losses. Following the unauthorized outflow of funds on May 31, the exchange has detailed a funding plan to cover the stolen amount and reassure its users.

In response to the security breach, DMM Bitcoin has secured 5 billion yen ($32 million) through borrowing and is set to acquire an additional 50 billion yen ($320.4 million) in funding in the coming days. The exchange aims to guarantee the full amount of users’ deposits by procuring an equivalent amount of bitcoin, demonstrating its commitment to restoring trust and safeguarding customer assets.

With financial support from its parent company, DMM Group, DMM Bitcoin is strategically securing the necessary capital to address the hack incident. The planned capital increase and subordinated borrowing are expected to bring the total funds to $352.4 million, enabling the exchange to recover from the significant losses incurred.

Despite the challenges posed by the hack, DMM Bitcoin remains focused on mitigating the impact on the market while diligently investigating the breach. The exchange has expressed deep regret for the inconvenience caused to its customers and is dedicated to resolving the situation with transparency and accountability.

The exploit, identified as the eighth largest crypto theft of all time by crypto forensics firm Elliptic, underscores the importance of robust security measures in the cryptocurrency space. DMM Bitcoin’s swift response and funding plan exemplify its resilience in the face of adversity, signaling a commitment to safeguarding user funds and upholding trust within the crypto community.

Written by Lily Polanco Follow
Junior News Writer @