DMM Bitcoin, a popular cryptocurrency exchange in Japan, has announced its plans to compensate victims of a recent hack that resulted in the theft of approximately 4,503 BTC, equivalent to $318.61 million.
In a recent announcement, the company revealed its intention to raise 55 billion Japanese yen, or $352.3 million, in order to reimburse customers affected by the hack. DMM Bitcoin plans to secure these funds through loans and capital increases from within its “group companies.”
The exchange outlined its strategy for raising the necessary funds. It has already borrowed 5 billion yen on June 3, with an additional 48 billion yen to be obtained through a capital increase on June 7. Furthermore, DMM Bitcoin will secure another 2 billion yen on June 10 through subordinated loans.
The raised funds will be used to repurchase the nearly 4,503 BTC stolen during the hack and to compensate affected customers, with any remaining funds allocated towards managing withdrawals.
The hack took place on May 31 at 1:30 PM local time, prompting DMM Bitcoin to suspend spot purchases on its platform and delay the withdrawal of Japanese yen. The exchange has assured customers that they will be fully compensated through the funds raised from group companies.
While the investigation into the hack is ongoing, blockchain security firm Blocksec has provided insight into the movement of the stolen funds. According to Blocksec’s data, the attackers transferred all 4,502.9 BTC to an external wallet with the address 1B6rJR…dZw7P, which subsequently distributed the funds to 10 different wallets. Nine of these transactions involved 500 BTC each, while the remaining wallet received 2.89 BTC.
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