In a security breach, Japanese cryptocurrency exchange DMM Bitcoin announced the theft of approximately 4,502.9 Bitcoin, valued at around 48.2 billion yen (approximately $304 million). The incident marks one of the largest cryptocurrency heists in recent history.
The breach was detected on May 31, 2024, at approximately 1:26 p.m. when DMM Bitcoin identified an unauthorised leak of Bitcoin from its wallets. The exchange immediately took steps to mitigate the leak and implement additional security measures to prevent further unauthorised access. The company is still investigating the full extent of the damage.
DMM Bitcoin has reassured its customers that their Bitcoin deposits will be fully guaranteed despite the breach. However, the exchange has implemented several temporary restrictions on its services to enhance security. These measures include the suspension of new account openings, the processing of cryptocurrency withdrawals, and the placing of new buy orders for spot trading. Only sell orders will be accepted for spot trading, and new open positions for leveraged trading are also suspended, with only settlement orders being processed.
Impact on Customers
The company has informed customers that existing limit orders for both spot and leveraged trading will remain unaffected. However, withdrawals of Japanese yen may experience delays. DMM Bitcoin has apologised for the inconvenience caused and assured customers that their assets are secure.
Response and Analysis
Cryptocurrency security firm Elliptic has reported that this heist ranks as the eighth-largest crypto theft of all time. It is the most significant since the $477 million hack suffered by FTX in November 2022. Elliptic has also confirmed the identification of the wallets involved in the DMM Bitcoin attack.
Ongoing Investigation
DMM Bitcoin continues to work on understanding the details of the attack and has not yet provided specific information about how the breach occurred. The company remains focused on ensuring the security of its platform and protecting customer assets.
The broader cryptocurrency community will be closely monitoring the developments of this case and the measures taken by DMM Bitcoin to prevent future incidents.
