DMM Bitcoin, a prominent Japanese cryptocurrency exchange, reported a major hack resulting in a loss of $305 million. On May 31, 2024, the exchange detected unauthorized access leading to the theft of 4,502.9 BTC. The exchange has since suspended several services to protect customer assets.
As of now, DMM Bitcoin halted new account openings, cryptocurrency withdrawals, and new leveraged trading positions, local media reports.
The exchange plans to replace the stolen BTC with support from its group companies, ensuring full compensation for affected users.
Thankfully, Japanese law requires the separation of customer and exchange assets, providing additional security.
DMM Bitcoin's security measures include segregating customer deposits and using cold wallets for over 95% of funds.
The hack highlights ongoing security challenges, similar to the 2018 Coincheck incident, which led to stricter regulations by Japan’s Financial Services Agency.
This incident follows a series of high-profile crypto hacks. In early 2023, the Poly Network suffered a breach, losing $600 million in various cryptocurrencies. Hackers exploited a vulnerability in the smart contract system. Later, in mid-2023, the Ronin Network was attacked, resulting in a $625 million loss. These hacks emphasize the persistent vulnerabilities in crypto infrastructure despite advancements in security measures.