Seventh Largest in History! DMM Bitcoin Hacked, 4,502 Bitcoins Stolen; Japan's Financial Services Agency Demands Thorough Investigation and Compensation Plan

Licensed Japanese cryptocurrency exchange DMM Bitcoin confirmed on the 31st of last month that a large amount of Bitcoin had been illegally transferred from its official wallet. Official statements later verified that 4,502.9 BTC were illegally moved from the exchange, resulting in a loss valued at approximately 48.2 billion yen (USD 311 million).

According to an official statement, countermeasures have been taken to address the abnormal outflow of funds. To further ensure the security of funds, the exchange has also imposed restrictions on some services. The statement emphasized that Bitcoins stored by users within the exchange would not be affected, and the exchange would secure the equivalent amount of BTC through internal group support to fully guarantee the funds.

Financial Services Agency Demands Investigation and Compensation Plan

In light of this situation, Japanese Finance Minister Shunichi Suzuki commented on the issue of illegal outflow from DMM Bitcoin at the Ministry of Finance yesterday (3rd), stating that such incidents will be thoroughly prevented.

Additionally, a representative from Japan's Financial Services Agency disclosed that the agency had issued a report request order to DMM Bitcoin under the Payment Services Act, demanding a report on the cause of the theft and a customer compensation plan.

Seventh Largest Cryptocurrency Hack in History

On the other hand, blockchain analysis firm Chainalysis mentioned on social platform X that the loss amount from the hack on DMM Bitcoin is the seventh largest in cryptocurrency hacking history and the biggest attack since December 2022. According to data from cryptocurrency forensics firm TRM Labs, the stolen funds have so far been dispersed to 10 wallet addresses.

Previously, Japan experienced two major cryptocurrency exchange hacks, namely the Mt. Gox incident in 2014 and the Coincheck incident in 2018, which saw thefts valued at USD 450 million and USD 534 million, respectively. This time, the DMM Bitcoin hack, valued at USD 311 million, becomes Japan's third-largest such case.