Breaking: DMMBitcoin Exchange Faces Hack, $300M in Bitcoin at Risk

DMM Bitcoin, a Japanese cryptocurrency exchange, has announced a substantial loss of Bitcoin (BTC) from its wallet. On May 31, 2024, the exchange detected an unauthorized outflow of 4,502.9 BTC, estimated to be worth approximately 48.2 billion yen ($305 million).

This breach has raised concerns across the cryptocurrency industry about the safety of digital assets.

DMMBitcoin Exchange $300M Bitcoin Hack

According to DMM Bitcoin’s official statement, the “leak” occurred around 1:26 p.m. local time, prompting immediate action from the company. DMM Bitcoin has temporarily suspended several of its operations, including screening for new account openings, withdrawing cryptocurrencies, and initiating new positions for leveraged trading.

The company assured its customers that all Bitcoin deposits are fully guaranteed, with plans to procure the equivalent amount of BTC leaked with support from its group companies.

According to CoinPost, DMMBitcoin, a cryptocurrency exchange under Japanese securities company DMM, was suspected of being hacked, and $300 million worth of Bitcoin may have been stolen. DMMBitcoin said it would purchase Bitcoin equivalent to the outflow amount and guarantee the…

— Wu Blockchain (@WuBlockchain) May 31, 2024

The security protocols of DMM Bitcoin have been under scrutiny. The company asserts that it separates customer assets from its own operational funds and that over 95% of customer assets are stored in cold wallets—systems isolated from the internet to prevent unauthorized access. Despite these measures, the substantial amount of Bitcoin stolen suggests that vulnerabilities existed, possibly affecting both hot and cold storage systems.

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