DMM Bitcoin plans to raise 320 million to compensate victims of recent hacking incident
The Japanese cryptocurrency exchange has announced on its website its intention to raise $320 million in order to buy bitcoin and compensate the victims of their recent hack.
As per the information available on DMM Bitcoin’s website, all customers who had Bitcoin (BTC) at the time of the hack will receive refunds from various “group companies.”
“We will ensure the safety of all the Bitcoin (BTC) held by our customers by enlisting the support of group companies to replace the leaked amount of Bitcoin (BTC),” the website stated.
DMM Bitcoin secured a 5 billion yen loan on June 3 and is planning to raise an additional 48 billion yen through a “capital increase” on June 7. Details regarding this increase were not provided on the website. Furthermore, the company aims to add 2 billion yen via subordinated loans on June 10, as mentioned in the announcement.
The company assured that these loans and fundraising efforts would not impact the overall BTC market prices. They did not disclose any further information regarding the hack but assured a thorough investigation.
“We are currently investigating the cause of the unauthorized disclosure. We will update all stakeholders as soon as we have more information,” the website mentioned.
Regarding the hack, the exchange was breached on May 31, resulting in the loss of over 4,500 Bitcoin (BTC) valued at approximately $308 million. At present, that BTC would be valued at $319 million.
The company stated that all the BTC was taken from customers’ wallets and pledged complete reimbursement. The hacker divided the stolen bitcoin among 10 wallets in batches of 500 BTC.
Initially, the company claimed it could provide full refunds due to compliance with Japanese regulations, which mandate virtual asset service providers to manage corporate liquidity separately from user funds.
