An event occurred that shook Japan’s cryptocurrency market today. Cryptocurrency exchange DMM Bitcoin reported that $300 million worth of Bitcoin was lost through “unauthorized leakage” from its crypto wallet. While this incident revived concerns about the security of cryptocurrencies in Japan, DMM also faced Bitcoin with a difficult process.
DMM Bitcoin had a “leak” problem
Japanese cryptocurrency exchange DMM Bitcoin reported that $300 million worth of Bitcoin was lost via “unauthorized exfiltration” from its crypto wallet earlier today. This event coincides with another bankrupt Japanese exchange, Mt. It coincided with a period when Gox was working on repayment plans. DMM Bitcoin refused to provide exact details regarding the “leak”. However, Chainalysis, a global cryptocurrency analysis company, described this incident as one of the most significant cryptocurrency attacks to date. Chainalysis used the following statements in its social media post:
Today’s hack on Japanese exchange DMM Bitcoin covers $305 million worth of Bitcoin and is ranked as the largest attack since December 2022, the 7th largest cryptocurrency attack in history.
The company marked the funds associated with the incident as “stolen.” According to DMM Bitcoin, the value of the “leak” reached ¥48.2 billion, equivalent to approximately 4,502.9 Bitcoins. The Japanese cryptocurrency exchange said in a statement:
We are still investigating the details of the damage. We have already taken measures to prevent unauthorized exfiltration, but we have placed restrictions on the use of some services to provide additional security.
Customer deposits are safe
The company, with the support of its group companies, has guaranteed that all Bitcoin (BTC) deposits made by its customers will be fully secured. Following the incident, the Japanese Financial Services Agency instructed the company to investigate the root cause of the incident and take measures to protect customers from potential losses. At the same time, law enforcement authorities launched an investigation into the matter, business newspaper Nikkei reported.
Although Japan is one of the cryptocurrency-friendly countries, it has experienced hacking incidents in its past. The biggest one, cryptokoin.com As we reported, Mt. went bankrupt after more than $470 million was stolen in 2014. Gox stock exchange. Later in 2018, another Japanese cryptocurrency exchange, Coincheck, suffered a similar attack with losses of more than $500 million. This incident has revived concerns about the security of cryptocurrencies. DMM Bitcoin faces a challenging challenge to restore customer trust. It also suggests that Japanese authorities may strengthen regulations to prevent future attacks.
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