DMM Bitcoin Plans 320m Fundraising to Compensate Victims of Recent Hack
The Japanese cryptocurrency exchange has revealed its intentions to raise $320 million through its website in order to acquire bitcoin and compensate the victims of their recent hack.
DMM Bitcoin’s website guarantees that all customers who had Bitcoin (BTC) during the hack will receive a refund from “group companies.” The website states, “As previously announced, we will ensure the safety of all Bitcoin (BTC) held by customers by receiving assistance from group companies to replace the amount of Bitcoin (BTC) that was stolen.”
On June 3, DMM Bitcoin secured a 5 billion yen loan and plans to raise an additional 48 billion yen on June 7 through a “capital increase.” Details of this increase were not disclosed on the website. Furthermore, the company intends to add 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 company did not provide specific information regarding the hack but assured a thorough investigation. The website states, “We are currently investigating the cause of the unauthorized disclosure. We will provide an update as soon as more information is available.”
Hack details:
The exchange fell victim to a hack on May 31, resulting in the loss of over 4,500 Bitcoin (BTC) valued at approximately $308 million. Currently, that BTC would be worth $319 million.
The company claims that all the BTC was taken from customers’ wallets and has pledged full reimbursement. The hacker distributed the stolen bitcoin among 10 wallets in increments of 500 BTC.
Initially, the company asserted its ability to issue full refunds due to compliance with Japanese regulations, which mandate virtual asset service providers to manage corporate liquidity separately from user funds.
