Japanese cryptocurrency exchange DMM suffered a significant loss of 4,502.9 BTC, equivalent to $305 million, after a private key hack. As a result, withdrawals have been temporarily suspended.
The breach came to light on May 30 at 10:14 PM UTC, when the analytics platform Whale Alert posted on social media platform X, “4,502 #BTC (308,948,771 USD) transferred from unknown wallet to unknown new wallet.” The linked blockchain data revealed an outflow of 4,502.9 BTC from a single wallet.
Initially, Whale Alert identified the wallet owner as “unknown.” However, DMM later confirmed on its website that it had lost exactly 4,502 BTC in an attack, indicating that this transaction was the result of the hack.
DMM stated it has “already taken measures to prevent further unauthorized leaks.” The exchange plans to “procure the equivalent amount of BTC” to ensure all users are compensated, with support from its group companies.
The exchange urged users to monitor updates, promising a new alert once services are fully restored.
DMM Exchange, part of the e-commerce conglomerate DMM Group, was launched in January 2018. The company also operates a cryptocurrency mining firm.
Hacks and scams continue to plague the cryptocurrency industry. In November, Poloniex exchange lost over $100 million due to a private key breach. Similarly, an attack on GDAC in April 2023 resulted in $14 million in losses.
Summary Review: The recent hack of Japanese cryptocurrency exchange DMM, resulting in the loss of $305 million in Bitcoin, underscores the ongoing vulnerabilities within the crypto industry. Despite the implementation of security measures, exchanges remain prime targets for cybercriminals. DMM’s prompt response to compensate affected users and strengthen its security protocols highlights the importance of vigilance and preparedness in the face of such threats. This incident serves as a stark reminder of the critical need for robust security measures to protect digital assets and maintain user trust in the evolving landscape of cryptocurrency trading.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
