Another Japanese cryptocurrency exchange has been hacked! DMM Bitcoin confirmed this afternoon that 4,502.9 BTC, worth 48 billion yen, has been stolen, marking the third largest loss in history.
(Previous Summary: Air Raid Alert: Screenshot of Mt. Gox preparing to repay 140,000 BTC, will Bitcoin plummet?)
(Background Supplement: The worst exchange: Mt. Gox is repaying $9.5 billion in Bitcoin, K33 Research: May cause BTC sell-off)
Title: Third Largest Loss for Japanese Exchange
Event: Mt. Gox incident, 850,000 BTC stolen
Event: Coincheck incident, 500 million NEM stolen
Japanese licensed cryptocurrency exchange DMM Bitcoin has confirmed the illegal outflow of a large amount of Bitcoin from its official wallet this afternoon. According to official confirmation, a total of 4,502.9 BTC has been illegally transferred from the exchange, resulting in a loss of 48 billion yen (305 million USD).
DMM Bitcoin, owned by Japanese entertainment giant DMM Group, is one of the approved exchanges by the Japanese government. It has previously enlisted mixed-race model Rola and actress Rika Nishikawa as endorsers.
The full article is as follows:
On May 31, 2024 (Friday) at around 13:26, we detected the unauthorized outflow of Bitcoin (BTC) from our company’s wallet.
Although we are still investigating the specific extent of the loss, the confirmed details are as follows. Measures have been taken to address the unauthorized outflow, but in order to further ensure security, we have imposed restrictions on certain services.
We apologize for any inconvenience caused to our customers.
Regarding the outflow of encrypted assets, it has been determined that a quantity of 4,502.9 BTC (equivalent to approximately 48.2 billion yen) has been illegally transferred from our wallet.
Regarding the Bitcoin (BTC) held by customers, we will provide full guarantee by allocating the corresponding amount of BTC through support from our group companies. Please rest assured.
Regarding the restricted use of services, we have imposed limitations on the following:
– Examination of new account openings
– Processing of outgoing encrypted assets
– Purchase orders for spot trading (only accepting sell orders)
– Creation of new positions for leveraged trading (only accepting settlement orders)
※ Spot and leveraged trading limit orders that have been issued will not be canceled. ※ Withdrawal of yen may take longer than usual.
The time for reopening services will be notified separately.
We deeply apologize for the immense inconvenience and concerns caused to our customers by this incident.
Users who have been in the cryptocurrency circle for a longer time may still remember the incident when Mt. Gox exchange was hacked. This hacking incident of DMM Bitcoin will become the third largest victim case in history.
Mt. Gox was once the world’s largest Bitcoin exchange, established in 2010 and headquartered in Tokyo, Japan.
In 2014, Mt. Gox suffered a major hack, resulting in approximately 850,000 BTC being stolen, with a market value of around 450 million USD at that time. Mt. Gox subsequently declared bankruptcy, causing significant losses of user funds, and only began repayment this year.
Coincheck is also a Japanese cryptocurrency exchange, established in 2012. In January 2018, Coincheck announced that its platform had been hacked, resulting in the theft of approximately 500 million NEM, with a market value of around 534 million USD.
Coincheck promised to compensate for user losses and was eventually acquired by Monex Group for reconstruction. Subsequently, the Financial Services Agency of Japan (FSA) strengthened its regulation of cryptocurrency exchanges, including stricter security measures and operational standards.
Related Reports:
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