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After losing US$300 million in a hacker attack, Japanese exchange DMM announced that it will refund all its customers. And in this sense, the company managed to raise 50 billion yen to buy Bitcoin and reimburse those injured by the attack.

According to the current yen exchange rate, the value corresponds to around US$320 million. In other words, DMM has more than enough to cover the losses from the attack, which occurred at the end of May. Now, the company wants to reimburse everyone who suffered losses resulting from the theft.

Exchange announces Bitcoin purchase and refund

This Wednesday (5), DMM Bitcoin stated that it would take measures to avoid any negative effects of the theft on the Bitcoin market. The company refers to purchasing BTC for reimbursement, as the high value can cause sudden movements in the price of the cryptocurrency.

To avoid this, the exchange stated that it will make purchases gradually, at moderate amounts. As a result, refunds to customers must also occur gradually.

Furthermore, the platform also stated that it would be conducting an investigation into the “unauthorized exit” that occurred last week. These investigations include DMM contacting Japanese authorities.

According to DMM, the attacker managed to steal around 4,503 BTC which at the time of the attack was worth around US$320 million. With the recent appreciation of cryptocurrency, the value of the theft rose to US$320 million.

Chainalysis, a platform that monitors the movement of digital assets across the blockchain, said the DMM theft was the seventh largest in the history of cryptocurrencies. And Japan’s Financial Services Agency has subpoenaed DMM Bitcoin to provide a detailed account of the origins of the breach, as well as the timeline for refunds to customers.

Additionally, Japanese Finance Minister Shunichi Suzuki affirmed the government’s commitment to implementing measures aimed at preventing future security breaches on the country’s exchanges.

Hackers wreak havoc again

As the price of cryptocurrencies continues to rise, the number of incidents continues to increase at the same rate. Japan is one of the most cryptocurrency-friendly countries, but it also has the worst record of exchange incidents.

The most prominent occurred in 2014, when the infamous exchange Mt. Gox filed for bankruptcy after a theft of 850,000 BTC, which at the time was worth US$470 million. In 2018, the Coincheck exchange suffered a serious breach that resulted in the loss of more than US$500 million.

Currently, exchange MT Gox has started implementing its customer refund plan after 10 years, moving $10 billion in BTC and Bitcoin Cash (BCH) during the last week. According to previous courses, Mt. Gox will finish its redistribution around September 2024 – payments will occur gradually so as not to impact the price of BTC.

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