DMM Bitcoin announces compensation strategy for hack victims

Share this article

Japanese crypto exchange DMM Bitcoin has announced its plan to pay back victims of a recent unauthorized leak of 4,502.9 BTC, worth approximately $305.1 million at the time of the theft. The company has secured funding through a loan and plans to raise additional capital to ensure full reimbursement for affected customers.

In a translated post, DMM Bitcoin reiterated its commitment to making available the entire amount of customer-held bitcoin lost in the leak, with support from its group companies. The exchange took out a loan worth $32 million (five billion yen) on Monday and plans to raise an additional $310 million (48 billion yen) on June 7. The company also seeks to secure roughly $13 million (two billion yen) in subordinated debt by June 10.

The unauthorized leak occurred on May 31 at 12:26 am ET (1:26 pm JST), prompting DMM Bitcoin to halt crypto withdrawals, spot market purchase orders, and new leveraged trading positions. The company quickly assured customers that their bitcoin deposits would be fully guaranteed, a promise it has now repeated in its latest update.

DMM Bitcoin intends to release a report with more details about the leak once the information becomes available. The company stated, “We will continue to procure [b]itcoin equivalent to the amount leaked, taking care not to impact the market. We are currently continuing to conduct an investigation to determine the cause of the unauthorized leak.”

Share this article