Breaking News: Licensed Japanese exchange DMM hacked, 4,503 bitcoins stolen, resulting in a loss of 48.2 billion yen.

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DMM Wallet Encounters Illegal Bitcoin Outflow

At around 1:26 pm on May 31, 2024 (Friday) Japan time, a large amount of Bitcoin (BTC) was confirmed to have been illegally drained from the DMM Wallet. A detailed investigation into the extent of the losses is currently ongoing.

Details of the Bitcoin Outflow

The amount of Bitcoin illegally drained is 4,502.9 BTC, equivalent to approximately 48.2 billion Japanese Yen. In response to this significant outflow, DMM has stated that they have taken measures and decided to restrict the use of some services to further ensure security.

Customer Asset Protection: DMM to Fully Compensate

DMM claims that Bitcoin (BTC) deposits made by customers will be fully protected. For the significant portion of Bitcoin that was drained, it will be reallocated and fully compensated with the support of group companies.

Restricted Services

In response to this incident, the following services will be temporarily restricted.

- Review of new account openings
- Processing of cryptocurrency withdrawals
- Suspension of buy orders for spot trading (only sell orders accepted)
- Suspension of new opening orders for leveraged trading (only settlement orders accepted)

In addition, existing limit orders for spot and leveraged trading will not be canceled. Withdrawals in Japanese Yen may take longer than usual. The time for service restoration will be notified separately.

Industry Experts: DMM's Annual Profit Losses Only 1/20 of Assets

In the history of Japanese exchanges, there have been two major theft incidents involving Mt.Gox and Coincheck. DMM, a well-known adult entertainment conglomerate in Japan, despite claiming to fully compensate users, according to industry experts, DMM Exchange's annual profits are only 1/20 of the lost assets, which may cause significant damage. DMM was even in a deficit state last year...