DMM Bitcoin, a popular Japanese cryptocurrency exchange, has announced its plans to compensate the victims of a recent hack that resulted in the theft of around 4,503 BTC, equivalent to $318.61 million.
In a recent announcement, the company revealed its intention to raise 55 billion Japanese yen, which amounts to $352.3 million, in order to repay those affected by the hack. DMM Bitcoin stated that it will secure the necessary funds through loans and capital increases from its affiliated companies.
To gather the funds, DMM Bitcoin outlined its strategy. The exchange mentioned that it had already borrowed 5 billion yen on June 3, with an additional 48 billion yen set to be raised through a capital increase on June 7. Moreover, another 2 billion yen will be obtained through subordinated loans on June 10.
The primary purpose of the raised funds will be to repurchase the nearly 4,503 BTC that was stolen during the recent hack. Subsequently, the company will reimburse the impacted customers and utilize the remaining funds to facilitate withdrawals.
The hack took place on May 31 at 1:30 PM local time, prompting DMM Bitcoin to halt all spot purchases on its platform and delay the processing of Japanese yen withdrawals. Following the incident, the exchange reassured its customers that they would be fully compensated through the funds secured from its group companies.
DMM Bitcoin is currently conducting an investigation to determine the root cause of the hack. Once the investigation is complete, the exchange plans to provide more details on the incident.
Meanwhile, Blocksec, a renowned blockchain security firm, has shared insights 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. The recipient address subsequently distributed the funds across 10 different wallets, with nine of them receiving 500 BTC each and the remaining wallet obtaining 2.89 BTC.
Please note that the information provided in this article is for informational purposes only and should not be construed as financial advice. The opinions expressed are solely those of the author and do not represent the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic holds no liability for any financial losses incurred.
