Cryptocurrency exchange loses $300 million worth of Bitcoin in attack

This Friday (31), DMM Bitcoin, a Japanese cryptocurrency exchange, announced that it suffered a security breach that resulted in the theft of more than US$300 million in Bitcoin.

According to an official statement from the company published on its website, the exchange detected an unauthorized leak of Bitcoin from its wallet.

“At approximately 1:26 pm on Friday, May 31, 2024, we detected an unauthorized leak of Bitcoin from our wallet,” reported DMM Bitcoin, which is a subsidiary of DMM Group.

Attack on cryptocurrency exchange

In total, the attackers took 4,502.9 Bitcoins, which is equivalent to around US$306 million at the time of the theft. In response to the incident, DMM Bitcoin exchange assured its customers that all Bitcoin deposits would be fully guaranteed.

Furthermore, the company promised to acquire the equivalent amount of stolen BTC with the support of group companies to ensure that no customers suffer financial losses due to the theft.

As DMM Bitcoin exchange stated, the team is investigating the incident to identify how the breach occurred and to prevent future attacks. The company also said it is collaborating with local authorities and other entities to recover the stolen funds and bring those responsible to justice.

News of the theft generated great concern in the cryptocurrency community, once again highlighting the risks associated with exchange security.

History of theft in brokerages

This is not the first major theft to affect a cryptocurrency exchange. The industry has seen several similar incidents over the years, such as the infamous case of Mt. Gox, also a Japanese exchange, which in 2014 declared bankruptcy after the theft of approximately 850,000 Bitcoins.

Such events have driven discussions about regulation and security in the cryptocurrency sector, with many calling for stricter regulations and safer technologies to protect investors’ assets.

Despite the incident, the exchange reaffirmed its commitment to the security and protection of its customers’ assets. The company promised to review and strengthen its security protocols to prevent similar events from occurring in the future. Furthermore, it guaranteed that affected customers will be fully compensated, thus mitigating users’ immediate concerns.