DMM Cryptocurrency Exchange Hit with $305M Bitcoin Hack, Vows Full Compensation to Users
Summary:
The centralized cryptocurrency exchange, DMM, has been hacked, leading to a loss of over $305 million in Bitcoin. The company has assured user deposits will be fully covered and has paused some transactions. Measures have been put in place to prevent further unauthorized leaks. The attack has initiated a broader discussion on security issues across the cryptocurrency exchanges.
On May 30, DMM, a centralized cryptocurrency exchange, experienced a significant server breach, resulting in the theft of more than $305 million in Bitcoin (BTC). DMM acknowledged the security lapse via its official website, assuring users that all deposited funds will be fully covered, despite the breach. As a result of the attack, the company has paused certain transactions, including withdrawals, the creation of new accounts, the placement of new spot buy orders, and all new leveraged orders. However, already placed limit orders remain unaffected.
The cyber attack on DMM commenced a whirlwind of online discussions on social media platform X, particularly following a 10:14 pm UTC post by analytics entity Whale Alert. The post, which read "4,502 #BTC (308,948,771 USD) transferred from unknown wallet to unknown new wallet," traced a blockchain data leak revealing a $305 million, or 4,502.9 BTC, transfer from a singular wallet. Initially, the wallet's ownership was undetermined. Still, DMM later affirmed that the staggering 4,502 BTC loss occurred during the hack, identifying the exchange as the probable source.
In responding to the hack, DMM assures its users that preventative measures against unauthorized leaks have been established. The company pledges to amass an equivalent amount of BTC to fully compensate its users, with assistance provided by its group affiliates. DMM also encouraged its users to stay alert for updates on a forthcoming alert signaling the recommencement of all services.
The DMM Exchange operates under the jurisdiction of the e-commerce tycoon DMM Group, which launched the platform in January 2018. The DMM Group also owns a crypto mining corporation.
Cryptocurrency exchange users continually face challenges from hacks and scams. The Poloniex exchange suffered a similar fate in November, when an unauthorized user breached its private key, snatching an excess of $100 million. GDAC also reported a $14 million loss following an attack in April 2023.
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Published At
5/31/2024 6:37:08 PM
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