Japanese Crypto Exchange DMM Bitcoin Reports $300M BTC Theft

Zinger Key Points
  • The exchange reported that 4,502.9 BTC, valued at $305.1 million, were stolen in an "unauthorized leak."
  • DMM Bitcoin has around 370,000 customer accounts, according to a report by Japanese news service Nikkei.

DMM Bitcoin, a Japanese cryptocurrency exchange, announced on Friday that over $300 million worth of Bitcoin BTC/USD had been stolen in an “unauthorized leak.”

What Happened: According to a blog post by DMM Bitcoin, the theft involved 4,502.9 BTC, valued at approximately $305.1 million at current market prices.

The exchange assured customers that their bitcoin deposits would be “fully guaranteed” through the procurement of an equivalent amount of BTC with the support of their group companies.

However, DMM Bitcoin did not specify a timeline for these procurements.

The incident occurred at 1:26 p.m. Tokyo time, coinciding with a transaction of 4,502 BTC flagged by the Whale Alert account on X (formerly Twitter).

In response to the theft, DMM Bitcoin has halted crypto withdrawals, spot market purchase orders, and the opening of new leveraged trading positions. Additionally, the exchange is “screening” new account openings.

Withdrawals in yen may experience delays, as indicated in the blog post.

Benzinga future of digital assets conference

Also Read: Is It Time To Buy Bitcoin Mining Stocks?

While DMM Bitcoin has not provided a specific timeline for the resumption of services, it stated that a separate announcement would be made with further details.

According to Japanese news service Nikkei, DMM Bitcoin had around 370,000 customer accounts by the end of 2023.

If confirmed, this theft would rank among the largest crypto exchange attacks in history. In comparison, Coincheck experienced a theft of approximately $533 million worth of crypto in 2018.

Japan also witnessed the infamous collapse of Mt Gox in 2014, with losses exceeding $400 million at the time, leading to a decade-long process of fund distribution to creditors.

What Happened: For more insights into the evolving digital assets landscape, industry leaders will convene at the Benzinga Future of Digital Assets event on Nov. 19.

This event will explore the latest developments and security measures in the cryptocurrency sector.

Read Next: Biden’s Crypto Policies Are Shaking Up The Crypto Community But ‘Long Way Left To Go,’ Says Expert

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