DMM Bitcoin to secure 320 million for compensating victims of recent cyber attack

The Japanese cryptocurrency exchange has revealed its intentions on their official website to raise $320 million in order to buy bitcoin and compensate the victims of their recent hack.

According to DMM Bitcoin’s website, all customers who had Bitcoin (BTC) at the time of the hack will receive a refund from what they refer to as “group companies.”

“We will ensure the safety of all the Bitcoin (BTC) held by our customers by enlisting the support of our group companies to make up for 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 on June 7 through a “capital increase.” The specifics 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 mentioned in the announcement.

DMM Bitcoin assured that these loans and fundraising activities will not impact the overall pricing of the BTC market. They did not provide any additional information regarding the hack but assured a thorough investigation.

“We are currently delving into the cause of the unauthorized disclosure. Once we have all the details, we will provide a follow-up update,” the website stated.

Details of the Hack:
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. At present, that BTC would be valued at $319 million.

The company stated that all the BTC was taken from customers’ wallets and pledged full reimbursement. The hacker dispersed the stolen bitcoin among 10 wallets in increments of 500 BTC.

Initially, the company claimed that they could offer complete refunds due to their compliance with Japanese regulations, which mandate virtual asset service providers to maintain corporate liquidity separately from user funds.

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