DMM Bitcoin plans to raise 320 million to compensate victims of recent hack
The Japanese cryptocurrency exchange has announced its intention on its website to raise $320 million in order to buy bitcoin and compensate the victims of its recent hack.
DMM Bitcoin’s website guarantees a refund to all customers who held Bitcoin (BTC) during the hack, with assistance from “group companies.”
“We will ensure the safety of all Bitcoin (BTC) held by customers by enlisting the help of group companies to replace the leaked amount,” states the website.
On June 3, DMM Bitcoin secured a 5 billion yen loan and plans to acquire an additional 48 billion yen on June 7 through a “capital increase.” Although details of this increase were not disclosed on the website. Furthermore, the company intends to secure an additional 2 billion yen through subordinated loans on June 10, as announced.
DMM Bitcoin assures that these loans and fundraising activities will not impact the overall BTC market pricing. The website did not provide any further information on the hack but assured a thorough investigation will be conducted.
“We are currently investigating the cause of the unauthorized disclosure. Once we have more information, we will provide an update,” the website states.
In regards to the hack itself, the exchange was compromised on May 31, resulting in the loss of over 4,500 Bitcoin (BTC) valued at approximately $308 million, which would now be worth $319 million.
The company claims that all the stolen BTC was taken from customers’ wallets and has pledged full compensation. The hacker dispersed the stolen bitcoin into 10 wallets in increments of 500 BTC each.
Initially, the company asserted its ability to issue complete refunds due to compliance with Japanese regulations, which mandate virtual asset service providers to manage corporate liquidity separately from user funds.
